Homeowners and buy-to-let (BTL) landlords with mortgage arrears fell in number in the three months to September, while repossessions remain lower than the long-term average.
The positive trend, highlighted by UK Finance’s Q3 mortgage arrears and repossession data, showed a 3% decrease in homeowner mortgages in arrears to 93,630 in Q3 2024, compared with Q2 2024.
Meanwhile, the number of BTL mortgages in arrears decreased by 4% compared with the previous quarter, going down to 13,000.
At their peak, the number of homeowner and BTL mortgages in arrears were almost twice the current level, reaching 209,600 in Q1 2009 during the global financial crisis.
The overall proportion of mortgages in arrears remains low, at 1.08% of homeowner mortgages and 0.67% of BTL mortgages.
Repossessions remain low
Some 990 homeowner and 710 BTL mortgaged properties were taken into possession during Q3, which remains significantly lower than long-term averages.
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Combined, this is 15% lower than the 1,990 seen in Q4 2019, before the pandemic, and 87% lower than the 13,200 seen in Q1 2009 – the peak of the previous possessions cycle during the financial crisis.
Early arrears volume falls
Homeowner and BTL mortgages in early arrears fell by 5% and 10% respectively.
UK Finance said this suggested a limited increase in total arrears cases in the next quarter. However, the decline partly reflects some customers previously in lighter arrears positions seeing their positions worsen, moving into more serious arrears bands.
Eric Leenders, managing director of personal finance at UK Finance, said: “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. Please reach out to your lender as soon as possible to discuss the help available if you have any concerns. Doing so won’t affect your credit score.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Homeowner and BTL mortgage arrears fall in Q3 – UK Finance
