The Bank of England’s figures which show defaulting on lending has increased are unsurprising, it has been said.

Victoria Barnard, policy advisor at The Building Societies Association (BSA), revealed that job losses and insufficient savings are likely to create problems for mortgage borrowers.

"The fact that we have seen a reduction in the number of cases going all the way to repossessions [shows that], although arrears are rising, more forbearance is going on to help these people stay in their homes," she continued.

Such figures should not alarm people, Ms Barnard suggested, advising that people make contact with their lenders to come to some resolution over their problems.

The Bank revealed that default rates on secured lending to households and losses on loans in default had risen over the past three months, though by a little less than expected.

Lenders revealed that declining house prices had driven the increase in losses given default, while default rates – and losses given default – were expected to rise further.