UK Finance has reported that there were 82,800 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in the fourth quarter of 2017, 7% fewer than in the same quarter of the previous year.
Within the total, there were 24,700 homeowner mortgages with more significant arrears (representing 10% or more of the outstanding balance). This was 1% fewer than in the same quarter of 2016.
Meanwhile, there were 5,100 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance in the fourth quarter of 2017, 2% greater than in the same quarter of the previous year. Within the total, there were 1,200 buy-to-let mortgages with more significant arrears (representing 10% or more of the outstanding balance). This was 20% greater than in Q4 of 2016.
1,100 homeowner mortgaged properties were taken into possession in the fourth quarter last year, 8% fewer than in the same quarter of 2016. 600 buy-to-let mortgaged properties were taken into possession in the fourth quarter of 2017, unchanged from the same quarter of the previous year.
Paul Smee, head of mortgages at UK Finance, said: “Annual homeowner possessions currently stand at a 36-year low, with overall arrears and possessions continuing to decline. This reflects the mortgage industry’s continued commitment to appropriate and prudent lending.
“All potential borrowers are carefully assessed against their ability to pay back their loans, and lenders work closely with their customers to ensure that any payment issues are dealt with at an early stage. Anyone experiencing difficulty with their mortgage should contact their provider immediately.”