Arrears and possessions

Data Published on 12/11/2020

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

Latest Data - Q3 2020

Key data highlights:

  • Since March, mortgage lenders have been offering payment deferrals to customers and buy-to-let landlords where Covid-19 has impacted their ability to meet their monthly mortgage payments, with mortgage arrears remaining low in 2020 as a result. Over 2.6 million mortgage payment deferrals have been approved to date, with just under 140,000 still in place at the end of October.
  • Lenders are continuing to support customers through payment difficulties resulting from Covid-19. More information can be found by contacting your lender directly or visiting your lender's website.
  • There were 74,850 homeowner mortgages in arrears of 2.5 per cent or more of the outstanding balance in the third quarter of 2020, 5 per cent greater than in the same quarter of the previous year. Within the total, there were 24,860 homeowner mortgages with more significant arrears (representing 10 per cent or more of the outstanding balance). Early homeowner arrears (those less than 5 per cent of balance in arrears) have declined in Q3 2020 as lender support (primarily in the form of payment deferrals) has helped borrowers keep up to date with their mortgage payments. While later arrears (those more than 7.5 per cent of balance in arrears) have increased in 2020, the new levels of these arrears are still significantly lower than those levels seen in previous years. Overall, arrears levels in 2020 remain near to the historically low levels of arrears we have seen in the last three years, as shown in the chart below.
  • There were 5,400 buy-to-let mortgages in arrears of 2.5 per cent or more of the outstanding balance in the third quarter of 2020, 19 per cent greater than in the same quarter of the previous year. Within the total, there were 1,350 buy-to-let mortgages with more significant arrears (representing 10 per cent or more of the outstanding balance). This recent increase in buy-to-let arrears is from a low-base, with current levels remaining lower than seen in previous years.
  • 160 homeowner mortgaged properties and 230 buy-to-let mortgaged properties were taken into possession in the third quarter of 2020, 88 per cent and 71 per cent fewer, respectively, than in the same quarter of the previous year. Following the industry moratorium on involuntary possessions, these low possessions numbers in Q3 2020 for the most part reflect cases where the customer requested the possession to go ahead or where the property was vacant.

Mortgage Arrears Possessions Update - 12 November 2020

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