Key information:  

Homeowner and buy-to-let mortgage arrears  

UK Finance’s latest arrears and possessions data shows a three per cent decrease in homeowner mortgages in arrears to 93,630 in Q3 2024, compared with Q2 2024.  

The number of BTL mortgages in arrears showed a slight (four per cent) decrease compared with the previous quarter, to 13,000. 

The overall proportion of mortgages in arrears remains low, at 1.08 per cent of homeowner mortgages and 0.67 per cent of BTL mortgages. 

Homeowner and BTL mortgages in early arrears fell by five per cent and ten per cent respectively. This points to fewer customers newly entering arrears and suggests  a limited increase in total arrears cases in the next quarter, at most. However, the decrease also partly reflects some customers previously in lighter arrears positions seeing their positions worsen, moving into more serious arrears bands. 

For comparison purposes, the number of homeowner and BTL mortgages in arrears in Q1 2009, the peak in arrears numbers during the global financial crisis, was 209,600 – this is almost twice the number currently in arrears. 

Possessions  

Possessions numbers remain very low compared to historic norms. A total of 1,700 homeowner and BTL mortgaged properties were possessed in Q3 2024. This is 15 per cent lower than the 1,990 seen in Q4 2019, before the pandemic, and 87 per cent lower than the 13,200 seen in Q1 2009 - the peak of the previous possessions cycle during the financial crisis. 

Lenders will always seek to ensure customers remain in their homes and possession is only ever a last resort after other options have been explored with the customer. 

Lender support for borrowers  

Lender stress tests have ensured borrowers are able to keep up with their mortgage payments, even if their interest rate increases above the rate in place when they first took out their mortgage. 

However, other factors can also impact customers’ ability to manage their mortgage payments. Anyone worried about their mortgage payments should reach out to their lender at the earliest opportunity to discuss the options available for their circumstances. 

Contacting your lender to find out what support is available will not impact your credit score.