The number of mortgages in arrears fell by 2% in the final quarter of 2024 compared to Q3, new figures published by UK Finance have revealed.
The banking body reported a total of 92,170 homeowner mortgages in arrears in Q4.
UK Finance’s figures also showed that the number of buy-to-let (BTL) mortgages in arrears fell by 3% in Q4, to 12,610.
Historically, UK Finance said the overall proportion of mortgages in arrears is still low, at 1.06%, of homeowner mortgages and 0.65% of BTL mortgages.
For comparison, 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.
Director of mortgages at UK Finance, Charles Roe, said: “The number of mortgages in arrears has seen a slight decrease compared to the previous quarter. Having peaked in Q1 2023, arrears appear to now be on a confirmed downward trend. This reflects the fact that, while pressures remain, the challenges of higher interest rates and cost of living increases have begun to ease.
“This is good news for customers, but we know that this will not be the case across all households, and lenders will support anyone who might be struggling.”
UK Finance did report that the number of possessions increased in Q4, although this figure also remains low compared to historic norms.
A total of 1,730 homeowner and BTL mortgaged properties were repossessed in Q4 last year. This was 87% lower than the 13,200 seen in Q1 2009 and 13% lower down on the 1,990 seen in Q4 2019, the last full quarter before the COVID pandemic.
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