Home repossessions have increased by 19 per cent to 1,330 in the third quarter of 2019 compared to the same period last year, new figures from UK Finance have revealed.
UK Finance says the slight increase in possessions has been driven in part by a backlog of historic cases which are being processed in line with the latest regulatory requirements.
The proportion of homeowner mortgages in arrears remains at historically low levels, with the vast majority of borrowers continuing to repay their mortgages in full and on time each month. There were 71,590 homeowner mortgages (0.79 per cent of all residential mortgages outstanding) in arrears of 2.5 per cent or more of the outstanding balance in the third quarter of 2019, nine per cent fewer than in the same quarter of 2018. Within the total, there were 22,300 homeowner mortgages with more significant arrears (representing 10 per cent or more of the outstanding balance), eight per cent fewer than in the same quarter of 2018.
Commenting on today’s UK Finance Arrears & Possessions data, Mark Pilling, managing director Spicerhaart Corporate Sales said “Arrears remain low, but with weak retail performance and worsening economic data, it’s difficult to imagine this being sustained long into the new year.”
“The mortgage possessions figures are concerning – up 19% year on year for homeowners, and 40% for buy to let. UK Finance are right to point out that this stems in part from historic cases but it is nonetheless a significant jump.”