Arrears and possessions

Data Published on 14/11/2019

Trends covering arrears and possessions of property linked to first charge mortgages provided by members.

Latest Data - Q3 2019

Key data highlights:

  • The proportion of homeowner mortgages in arrears remains at historically low levels, with the vast majority of borrowers continuing to repay their mortgages in full and on time each month. There were 71,590 homeowner mortgages (0.79 per cent of all residential mortgages outstanding) in arrears of 2.5 per cent or more of the outstanding balance in the third quarter of 2019, nine per cent fewer than in the same quarter of 2018. Within the total, there were 22,300 homeowner mortgages with more significant arrears (representing 10 per cent or more of the outstanding balance), eight per cent fewer than in the same quarter of 2018. 

  • 1,330 homeowner mortgaged properties were taken into possession in the third quarter of 2019, 19 per cent more than in the same quarter of the previous year, but well below the levels seen between 2009 and 2014 (see chart below). This slight increase in possessions has been driven in part by a backlog of historic cases which are being processed in line with the latest regulatory requirements*. Lenders continue to show flexibility to borrowers in financial difficulty and possession is always a last resort.

  • There were 4,550 buy-to-let mortgages (0.23 per cent of all buy-to-let mortgages outstanding) in arrears of 2.5 per cent or more of the outstanding balance in the third quarter of 2019, five per cent fewer than in the same quarter of the previous year. Within the total, there were 1,170 buy-to-let mortgages with more significant arrears (representing 10 per cent or more of the outstanding balance). This was one per cent fewer than in the same quarter of the previous year.

  • 800 buy-to-let mortgaged properties were taken into possession in the third quarter of 2019, 40 per cent greater than in the same quarter of the previous year. This increase is driven in part by a backlog of historic cases which are being processed on the same basis as the latest regulatory requirements*. Lenders continue to show flexibility to borrowers in financial difficulty and possession is always a last resort.

 

 

 

 

Mortgage Arrears Possessions Update - 14 November 2019

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