UKAR ARena Issue 7: Winter 2013 | Page 4

4 MAKING STRONG PROGRESS THREE YEARS ON. UKAR’s CEO Richard Banks reflects on the third anniversary of UKAR. UKAR ARena, published in Summer 2012, I reported key “ Working in close partnership with the debt advice industry, has helped us reduce the number of accounts in arrears.” Richard Banks, UKAR. “The New Year is always a time to reflect on past successes and consider future plans, and here at UKAR we have plenty of reason to do both. In October 2013 we celebrated the third anniversary of bringing our heritage businesses together under UKAR. statistics relating to the number of mortgage holders on UKAR’s books and the extent of their collective borrowing and arrears. Now, as we enter 2014, those figures have changed significantly as we help customers manage their finances, whilst we continue to deliver value for the taxpayer. At our formation in October 2010 we had 850,000 mortgage holders, with £86 billion of loans. Now we have just 491,000 with £64 billion of loans. Working in close partnership with the debt advice industry, has helped us reduce the number of accounts in arrears of over three months too – falling from 39,532 in October 2010 to 18,993 at end of September 2013. We will not be publishing our accounts until after March 2014, but at the end of December the numbers in arrears had continued Since our formation in October 2010 we have been working to fall. More customers are clearing their arrears in full and hard, serving the needs of taxpayers and mortgage customers thankfully there are fewer repossessions. and forging closer relationships with the debt advice industry. Research from YouGov and the Money Advice Service shows that We inherited the mortgage books of Bradford & Bingley, individuals who seek advice are twice as likely to make debts Mortgage Express and Northern Rock supported by manageable within 12 months compared to those who do not. government loans totalling £48.7 billion. With that in mind, we have adopted a proactive approach We expect to repay the majority of these loans within the to debt management; engaging customers who may be next ten years and we have already repaid more than in financial difficulty, or those showing signs that they are £9 billion, a real achievement for us all. struggling to balance budgets. Helping borrowers in financial difficulty access the best debt We can then signpost them to independent and impartial advice has been a vital part of our strategy – and an debt advice providers to get the support they need to approach which is paying dividends. In the first issue of ensure that they can continue as homeowners. The number 4 UKAR ARENA WINTER 2013