Credit, Collections & Insolvency News
New data from UK Finance has shown that repossessions were up 12% in Q4 compared to Q3, with more than 1,030 residential properties taken over in the last three months of 2024.
On a year-by-year basis, repossessions increased by 54% in Q4. Buy-to-let mortgage repossessions were up 30% year-on-year in Q4. The data also shows that there were 92,170 homeowner mortgages in arrears in Q4, marking a 2% fall from Q3. The number of buy-to-let mortgages in arrears also fell, dipping 3% to 12,610. As a proportion of loans, 1.06% of homeowner mortgages and 0.65% of buy-to-let home loans are in arrears.
Charles Roe, Director of Mortgages at UK Finance, 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. Lenders offer a range of support to anyone worried about their finances. If you’re worried about your finances, please reach out to your lender as soon as possible to discuss the help available. Doing so won’t affect your credit score.”