The number of homeowner mortgages in arrears was broadly unchanged throughout the second quarter of this year, although landlord arrears ticked up.
That’s according to UK Finance, which has released its latest mortgage arrears and possessions data.
It noted a marginal (1%) increase in buy-to-let (BTL) arrears compared with the previous quarter (to reach 13,570), while there was a marginal decrease in homeowner arrears to 96,070.
The number of homeowner mortgages in early arrears (between 2.5% and 5% of the outstanding balance) fell even further, by 3% compared with the previous quarter, while the number of BTL mortgages in early arrears fell by 6%.
The overall proportion of mortgages in arrears remains low, at 1.1% of homeowner mortgages and 0.69% of BTL mortgages.
Repossessions up
There were 980 homeowner-mortgaged properties taken into possession and 710 BTL-mortgaged properties, significantly lower than long-term averages but slightly up on the quarter.
UK Finance noted that, although the percentage of mortgaged properties taken into possession has risen, this is largely due to the courts increasing capacity to work through historical arrears cases.
A total of 1,690 homeowner and BTL mortgaged properties were possessed in Q2 2024. This is 15% lower than the 1,980 seen in the final quarter of 2019, before the pandemic, and 87% lower than the 13,200 seen in the first quarter of 2009 during the financial crisis.
Lender support
Lenders will always seek to ensure customers remain in their homes and possession is only ever a last resort after other options have been explored with the customer.
Charles Roe, director of mortgages at UK Finance, said: “The number of mortgages in arrears has remained broadly flat compared to the previous quarter, which is good news following recent increases. This reflects the fact that, while many households remain under pressure, the challenges of higher rates and the cost of living have begun to ease.
“However, we know that this will not be the case across all households, and lenders want to support anyone who might be struggling. Lenders offer a range of support to anyone worried about their finances.
“If you are worried about your finances, please reach out to your lender as soon as possible to discuss the support options available. Doing so won’t affect your credit score.”
