The Press and Journal (Inverness, Highlands, and Islands)
Mortgage arrears blamed on high UK rates
The number of homeowner-mortgaged properties being repossessed jumped by more than a third in the first quarter of this year compared with the previous three months, according to figures from a trade association.
Some 870 homeowner-mortgaged properties were repossessed in the first quarter of 2024, 36% higher than in the previous quarter and 9% higher than the same period a year earlier.
UK Finance said home repossession numbers remain very low compared with longer-term norms.
It said, while the percentage of mortgaged properties being repossessed has increased, this is largely due to older arrears cases working their way through the court system.
Some 600 buy-to-let mortgaged properties were repossessed in the first quarter of 2024, marking a rise of a fifth (20%) compared with the previous quarter and 40% higher than the same period a year earlier.
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 higher interest rates.
“Lenders offer a range of support to anyone worried about their finances, with teams of trained experts ready to help.”
UK Finance said mortgages in arrears accounted for 1.11% of all homeowner mortgages outstanding, and 0.69% of all buy-tolet mortgages outstanding in the first quarter of 2024.
There were 96,580 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in the first quarter of 2024, 3% higher than in the previous quarter.