Mortgage

Mortgage arrears edge up in Q1 2024

There has been a 3% increase in the number of homeowner mortgages in arrears, rising to 96,580 in Q1 2024, according to UK Finance’s latest arrears and possessions data.

Cost of living pressures and higher interest rates continue to have a major impact, contributing to the rise.

The number of buy-to-let properties in arrears remained the same as the previous quarter at 13,570.

Homeowner and buy-to-let properties in early arrears dipped by 2% and 11% respectively in the first quarte of the year.

The overall proportion of mortgages in arrears remains relatively low, at 1.11% of homeowner mortgages and 0.69% of buy-to-let mortgages. For comparison, the number of homeowner and buy-to-let mortgages in arrears in Q1 2009, the peak in arrears numbers during the global financial crisis, was 209,600 – almost twice the 110,150 seen in the first quarter of this year.

The data also shows that possessions numbers remain very low compared to historic norms. A total of 1,470 homeowner and buy-to-let mortgaged properties were possessed in Q1 2024, down 26% compared with Q1 2019, before the pandemic.

Charles Roe, director of mortgages at UK Finance, commented: “The number of mortgages in arrears, while still low, continues to rise as households remain under pressure from the cost of living and higher interest rates.”

 




Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

SUBSCRIBE TO OUR NEWSLETTER

Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.


100% secure your website.