The number of mortgage arrears is falling across with board but there were still 93,630 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in the third quarter of 2024, 3% fewer than in the previous quarter.
Within the total, there were 32,860 homeowner mortgages in the lightest arrears band (representing between 2.5 and 5% of the outstanding balance). This was 5% fewer than in the previous quarter.
There were 13,000 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance in the third quarter of 2024, 4% fewer than in the previous quarter.
Within the total, there were 5,070 buy-to-let mortgages in the lightest arrears band (representing between 2.5 and 5% of the outstanding balance). This was 10 per cent fewer than in the previous quarter.
MORTGAGES IN ARREARS
Mortgages in arrears accounted for 1.08% of all homeowner mortgages outstanding, and 0.67% of all buy-to-let mortgages outstanding in the third quarter of 2024.
Just under 1,000 (990) homeowner mortgaged properties were taken into possession in the third quarter of 2024, 1% greater than in the previous quarter.
Some 710 buy-to-let mortgaged properties were taken into possession in the third quarter of 2024, unchanged from the previous quarter.
REALLY POSITIVE
David Miller, divisional director at Spicerhaart Corporate Sales, said: “It’s really positive to see the number of arrears cases falling almost across the board.
“Not only is a great sign of lenders acting early to support cases, it demonstrates the positive changes we’ve seen in the market – helping borrowers access products at a better price.
“Of course, attention will be on those in the highest arrears band of 10% or more, the only band to see a quarterly increase.
VULNERABLE CUSTOMERS
“With refinancing not always an option and customer vulnerability a clear concern, the hope is that lenders are already engaging with this growing cohort of customers.
“While options can become more limited in these higher bands, there are opportunities for good outcomes still available, particularly through the likes of an assisted sale scheme.
ENCOURAGING
And he adds: “Even with 33,000 borrowers in the highest arrears band, it’s still encouraging to see that just a fraction of those are being repossessed.
“With the right technology and market partners, along with robust forbearance measures, it’s certainly possible for repossession to remain a last resort and for both the lender and the borrower to still secure a positive outcome.”
