Home repossessions on the rise

More homes were repossessed in the first quarter of 2024 compared to the previous quarter, according to UK Finance.

The number of homeowners who had their homes repossessed increased by 36% between the two quarters and there was also a 20% increase in the repossession of buy-to-let properties.

Cost-of-living pressures and higher interest rates

The latest data shows there were 96,580 homeowners in mortgage arrears of 2.5% or more of the outstanding balance, a 3% increase compared to the previous quarter.

For buy-to-let mortgages, this remained largely unchanged from the previous quarter, with 13,570 mortgages in arrears.

UK Finance says falling into arrears has largely been driven by cost-of-living pressures and higher interest rates.

You’re considered to be in arrears if you miss two or more payments.

Historic arrears cases

While the figures might seem alarming at first glance, repossession numbers still remain very low.

Mortgage arrears account for 1.11% of all outstanding homeowner mortgages and 0.69% of all outstanding buy-to-let mortgages.

UK Finance says one reason for the increase in repossession is due to historic arrears cases now working through the court system.

Reach out to your lender

If you’ve fallen behind on your mortgage payments, it’s vital that you don’t ignore the problem.

Charles Roe, director of mortgages at UK Finance, said:

“The number of mortgages in arrears, while still low, continues to rise as households remain under pressure from the cost of living and higher interest rates.

“Lenders offer a range of support to anyone worried about their finances, with teams of trained experts ready to help. If you are struggling, please reach out to your lender as soon as possible to discuss the support options available.”

If you’re worried about your mortgage payments, we encourage you to get in touch with your lender at the earliest opportunity, using our guide to help you.