• There were 76,740 homeowner mortgages in arrears of 2.5 per cent or more of the outstanding balance in the second quarter of 2018, 8 per cent fewer than in the same quarter of the previous year.
  • Within the total, there were 23,190 homeowner mortgages with arrears representing 10 per cent or more of the outstanding balance. This was 4 per cent fewer than in the same quarter of the previous year.
  • There were 4,440 buy-to-let mortgages in arrears of 2.5 per cent or more of the outstanding balance in the second quarter of 2018, 6 per cent fewer than in the same quarter of the previous year.
  • Within the total, there were 1,080 buy-to-let mortgages with arrears representing 10 per cent or more of the outstanding balance. This was 2 per cent greater than in the same quarter of the previous year.
  • 1,060 homeowner mortgaged properties were taken into possession in the second quarter of 2018, 5 per cent fewer than in the same quarter of the previous year.
  • 520 buy-to-let mortgaged properties were taken into possession in the second quarter of 2018, 24 per cent fewer than in the same quarter of the previous year.

Jackie Bennett, Director of Mortgages at UK Finance comments:

“Arrears and possessions are at an all-time historic low since we first started collecting this data over 24 years ago.

“While this is positive, last week’s base rate rise coupled with the disappointing uptake of the Support for Mortgage Interest (SMI) loan could see arrears creeping up in the coming months.

“With well over 90% of new loans taken out at fixed rates, most recent borrowers will see no immediate impact from the Bank rate increase. However, anyone with concerns about managing their mortgage should contact their lender to discuss the advice and support available. Repossession is always a last resort.”

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 trade association formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 250 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 bases 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.
  5. As of Quarter 2 2018, all arrears and possessions figures are rounded to the nearest 10 (excluding percentages).
  6. The Ministry of Justice’s mortgage and landlord possession statistics can be found on the gov.uk website. These include quarterly national statistics on possession claim actions in county courts by mortgage lenders and social and private landlords.
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Mortgage arrears and possessions continue to remain historically low