Arrears and possessions

Data Published on 21/01/2019

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

Latest Data - Q1 2019

Key data highlights:

  • There were 76,580 homeowner mortgages in arrears of 2.5 per cent or more of the outstanding balance in the first quarter of 2019, four per cent fewer than in the same quarter of 2018. Within the total, there were 23,520 homeowner mortgages with more significant arrears (representing 10 per cent or more of the outstanding balance). This was three per cent fewer than in the same quarter of 2018. The proportion of homeowner mortgages in arrears remains at historically low levels, with the majority of borrowers continuing to repay their mortgages in full and on time each month. 
  • There were 4,620 buy-to-let mortgages in arrears of 2.5 per cent or more of the outstanding balance in the first quarter of 2019, 3 per cent greater than in the same quarter of the previous year. Within the total, there were 1,200 buy-to-let mortgages with more significant arrears (representing 10 per cent or more of the outstanding balance). This was 12 per cent greater than in the same quarter of the previous year. While we are seeing mixed signs in buy-to-let arrears, these do not indicate a clear increasing trend at this stage. Additionally, increases are small and from a low base.
  • 570 buy-to-let mortgaged properties were taken into possession in the first quarter of 2019, 14 per cent fewer than in the same quarter of the previous year. 
  • 1,380 homeowner mortgaged properties were taken into possession in the first quarter of 2019, 10 per cent greater 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.

 

 

 

Mortgage Arrears Possessions Update - 9 May 2019

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