The overall proportion of mortgages in arrears remains low, at 1.10% of homeowner mortgages and 0.69% of buy-to-let mortgages
The number of homeowner mortgages in arrears was broadly unchanged throughout the second quarter of 2024 with less than a 0.5% decline to 96,070, compared to the previous quarter, according to UK Finance figures.
The number of buy-to-let properties in arrears showed a marginal rise of just more than 0.5% compared with the previous quarter, to 13,570.
The overall proportion of mortgages in arrears remains low, at 1.10% of homeowner mortgages and 0.69% of buy-to-let mortgages.
Homeowner and BTL properties in early arrears dropped by 3% and 6% respectively.
UK Finance says this means that fewer customers are falling into early arrears and indicates there could be a limited rise in arrears cases in the next quarter.
However, the decline also partly reflects some customers previously in early arrears moving into more serious arrears shortfalls.
While the percentage of mortgaged properties taken into possession has increased, this is largely due to the HM Courts Service increasing capacity to work through historic arrears cases.
Possession numbers remain very low compared to historic figures with a total of 1,690 homeowner and buy-to-let mortgaged properties were possessed in the second quarter of this year.
This is 15% lower than the 1,980 seen in the fourth quarter of 2019, before the pandemic, and 87% lower than the 13,200 seen in the first quarter of 2009.
UK Finance director of mortgages Charles Roe says: The number of mortgages in arrears has remained broadly flat compared to the previous quarter, which is good news following recent increases. This reflects the fact that while many households remain under pressure, the challenges of higher rates and the cost of living have begun to ease.
Meanwhile, Phoebus chief sales and marketing officer Richard Pike says: A 13% rise in possessions of BTLs in Q2 2024 might come as a blow to some. However, we can probably attribute a portion of this to the fallout from the previous high energy and general costs of living that have taken their toll on renters and landlords alike.
Now that inflation and energy prices have declined, and the market is so much more buoyant as we move through H2 2024, I would hope that the equivalent figures this time next year will look a lot more promising, he said.