Repossessions slightly up, but remain low
The number of UK homeowners and landlords struggling with mortgage repayments declined in the fourth quarter of 2024, according to the latest data from UK Finance. While repossessions increased, overall figures remain well below historical averages.
In the last three months of last year, the number of homeowner mortgages in arrears dropped by 2% compared to the previous quarter, with 92,170 cases recorded. Buy-to-let mortgage arrears also declined by 3%, totalling 12,610.
Despite ongoing economic pressures, the proportion of mortgages in arrears remains low, at 1.06% for homeowners and 0.65% for landlords. These figures contrast sharply with Q1 2009, when mortgage arrears peaked during the global financial crisis at 209,600 — more than double the current level.
The UK Finance report suggests that early-stage arrears have also decreased, which could limit future increases. However, UK Finance noted that some borrowers in lighter arrears have transitioned into more serious arrears categories.
Meanwhile, a total of 1,730 mortgaged properties were repossessed in Q4 2024, reflecting a slight increase from the previous quarter. However, this figure remains 87% lower than the 13,200 recorded in Q1 2009 and 13% below the 1,990 seen in Q4 2019, just before the pandemic.
“The number of mortgages in arrears has seen a slight decrease compared to the previous quarter,” said Charles Roe (pictured), director of mortgages at UK Finance. “Having peaked in Q1 2023, arrears appear to now be on a confirmed downward trend. This reflects the fact that, while pressures remain, the challenges of higher interest rates and cost-of-living increases have begun to ease.
“This is good news for customers, but we know that this will not be the case across all households, and lenders will support anyone who might be struggling. Lenders offer a range of support to anyone worried about their finances. If you’re worried about your finances, please reach out to your lender as soon as possible to discuss the help available. Doing so won’t affect your credit score.”
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