Arrears and possessions

Data Published on 13/02/2020

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

Latest Data - Q4 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 70,880 homeowner mortgages (0.78 per cent of all residential mortgages outstanding) in arrears of 2.5 per cent or more of the outstanding balance in the fourth quarter of 2019, nine per cent fewer than in the same quarter of the previous year. Within the total, there were 21,770 homeowner mortgages with more significant arrears (representing 10 per cent or more of the outstanding balance). This was nine per cent fewer than in the same quarter of the previous year.

  • 1,330 homeowner mortgaged properties were taken into possession in the fourth quarter of 2019. Although this represents a 17 per cent year-on-year increase, this is from a very low base, with 59 in every 100,000 homeowner mortgages being taken into possession in 2019. Levels remain well below those seen between 2009 and 2014 (see chart below). This increase in possessions has been driven in part by a backlog of historic cases which are being processed in line with the latest regulatory requirements6. Lenders continue to show flexibility to borrowers in financial difficulty and possession is always a last resort.

  • There were 4,390 buy-to-let mortgages (0.22 per cent of all buy-to-let mortgages outstanding) in arrears of 2.5 per cent or more of the outstanding balance in the fourth quarter of 2019, seven per cent fewer than in the same quarter of the previous year. Within the total, there were 1,160 buy-to-let 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 the previous year.

  • 660 buy-to-let mortgaged properties were taken into possession in the fourth quarter of 2019, 20 per cent greater than in the same quarter of the previous year. Although this represents a 20 per cent year-on-year increase, this is from a very low base, with 137 in every 100,000 buy-to-let mortgages being taken into possession in 2019. Levels remain well below those seen between 2009 and 2014 (see chart below). This increase is driven in part by a backlog of historic cases which are being processed on the same basis as the latest regulatory requirements6. Lenders continue to show flexibility to borrowers in financial difficulty and possession is always a last resort.

 

Mortgage Arrears Possessions Update - 13 February 2020

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