Key information:   

Homeowner and buy-to-let mortgage arrears   

In the fourth quarter of 2024, there were 92,170 homeowner mortgages in arrears. This was a two per cent decrease compared with Q3 2024.   

The number of BTL mortgages in arrears also fell, down three per cent compared with the previous quarter, to 12,610.  

The overall proportion of mortgages in arrears remains low, at 1.06 per cent of homeowner mortgages and 0.65 per cent of BTL mortgages.  

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 – over twice the number currently in arrears.  

During the quarter, the number of homeowner and BTL mortgages in early arrears fell which suggests that any rise in total arrears in the next quarter will be limited. However, the decrease also partly reflects the fact that some customers who were previously in lighter arrears positions are moving into more serious arrears bands.  

Possessions   

Possessions numbers increased, but remain very low compared to historic norms. A total of 1,730 homeowner and BTL mortgaged properties were repossessed in Q4 2024. For comparison purposes, this is 87 per cent lower than the 13,200 seen in Q1 2009 and 13 per cent lower than the 1,990 seen in Q4 2019, before the pandemic.  

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 affordability 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.