Finance

Mortgage arrears and repossessions rise

mortgage lenders

There were 13,570 BTL mortgages in arrears of 2.5% or more of the outstanding balance in Q4 2023, 18% more than in the previous quarter

UK Finance says there were 93,680 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in the fourth quarter of 2023. This is 7% higher than in the previous quarter.

Within the total, there were 35,940 homeowner mortgages in the lightest arrears band (representing between 2.5 and 5% of the outstanding balance). This was 5.0% higher than in the earlier quarter.

There were 13,570 BTL mortgages in arrears of 2.5% or more of the outstanding balance in Q4 2023, 18% more than in the earlier quarter. And within the total, there were 6,800 BTL mortgages in the lightest arrears band (representing between 2.5 and 5% of the outstanding balance). This was 8.9% more than in the previous quarter.

Mortgages in arrears accounted for 1.07% of all homeowner mortgages outstanding, and 0.69% of all BTL mortgages outstanding in Q4 2023.

Around 540 homeowner mortgaged properties were taken into possession in Q4 2023, 14% fewer than in the previous quarter; and 500 BTL mortgaged properties were taken into possession in Q4 2023, 11% greater than in the previous quarter.

UK Finance says: Possession is only ever a last resort and after other options have been explored. Across BTL and homeowner mortgaged properties, a total of 1,040 were repossessed in the fourth quarter of 2023. This compares with almost 2,000 in the fourth quarter of 2019 before the pandemic.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Invest for Property. The information provided on Invest for Property is intended for informational purposes only. Invest for Property is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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