• There were 82,800 homeowner mortgages in arrears of 2.5 per cent or more of the outstanding balance in the fourth quarter of 2017, 7 per cent fewer than in the same quarter of the previous year.
  • Within the total, there were 24,700 homeowner mortgages with more significant arrears (representing 10 per cent or more of the outstanding balance). This was 1 per cent fewer than in the same quarter of the previous year.
  • There were 5,100 buy-to-let mortgages in arrears of 2.5 per cent or more of the outstanding balance in the fourth quarter of 2017, 2 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 20 per cent greater than in the same quarter of the previous year.
  • 1,100 homeowner mortgaged properties were taken into possession in the fourth quarter of 2017, 8 per cent fewer than in the same quarter of the previous year.
  • 600 buy-to-let mortgaged properties were taken into possession in the fourth quarter of 2017, unchanged from the same quarter of the previous year.

Commenting on the data, Paul Smee, Head of Mortgages at UK Finance said:

“Annual homeowner possessions currently stand at a 36 year low, with overall arrears and possessions continuing to decline. This reflects the mortgage industry’s continued commitment to appropriate and prudent lending.”

“All potential borrowers are carefully assessed against their ability to pay back their loans, and lenders work closely with their customers to ensure that any payment issues are dealt with at an early stage. Anyone experiencing difficulty with their mortgage should contact their provider immediately.”

Notes to Editor

  1. For more information please call the UK Finance press office on 020 7416 6750 or mail press@ukfinance.org.uk.
  2. UK Finance is a new trade association which was formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation brings together most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.
  3. The data shown are for first charge mortgages only. Figures are reported by most UK Finance mortgage members and presented here on a grossed-up basis from that sample to reflect total market size.
  4. Arrears and possessions figures are for the UK as a whole. There is no breakdown of data for English regions or for individual countries in the UK.
Attachments
Mortgage Arrears and Possessions Update – February 2018
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