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Homeowner arrears ticked up slightly in the first quarter of this year, while possessions rose by over a third, a report has found.
According to the latest UK Finance figures, there were 96,580 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in Q1 2024, which is 3% up on the previous quarter.
The trade body continued on to say that there were 35,320 homeowner mortgages in the lightest arrears band, which is between 2.5% and 5% of the outstanding balance, which is 2% down on the previous quarter.
On the buy-to-let (BTL) side, there were 13,570 BTL mortgages in arrears of 2.5% or more of the outstanding balance in Q1 2024, which is unchanged from the previous quarter.
Within that, 6,070 BTL mortgages were in the lightest arrears band, which is between 2.5% and 5% of the outstanding balance. This is 11% down on the previous quarter.
UK Finance said that mortgages in arrears made up 1.11% of all homeowner mortgages outstanding and 0.69% of all BTL mortgages outstanding in Q1 2024.
The report found that 870 homeowner mortgaged properties were taken into possession in the first quarter of 2024, which is 36% greater than in the previous quarter.
It also found that 600 BTL mortgaged properties were taken into possession in the same period, which is 20% higher than the prior quarter.
Arjan Verbeek, founder and CEO of Perenna, said: “The relentless rise in arrears is another worrying reminder of the instability homeowners are facing. Soaring interest rates and increasing costs have put immense pressure onto millions of households.
“It’s clear the mortgage market needs reform so people have more choice with respect to the interest rate risk they take on. Reform that we need to enact now.”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
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