Wednesday, February 21, 2024
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.

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