This paper investigates the social distribution of mortgage arrears in England using the 1993 -94 Survey of English Housing. It models the odds of households being in mortgage arrears in relation to a range of socio-economic variables. It concludes that the relatively high rate of mortgage indebtedness of recent years is likely to continue for as long as there is such a fundamental disjuncture between current labour market, housing m arket and social security policy. Many of the features most closely associated with the flexibilisation of the labour m arket are the very factors which lead to mortgage indebtedness. At the same time levels of social security support for m ortgagors experiencing the periodic downside of the flexible economy are inadequate and likely to become even more so. Until such a time as a radical reconnection of these three policy spheres occurs the threat of further 'epidemics' of mortgage indebtedness is likely.