Interesting Arrears and Repossession Statistics For Residential Mortgages

UK Finance has published some statistics relating to arrears and repossessions for residential mortgages in the UK for the second quarter of 2021 some of which we mention below. Full details can be found on their website.

There were 76,270 mortgages for homeowners that were in arrears where the amount of arrears equated to 2.5% or more of the balance outstanding on their residential mortgages in the second quarter of 2021. This is 1,370 mortgages less than in the first quarter of 2021.

Included in the figure of 76,270 there was a total of 26,560 mortgages for homeowners that were in early arrears with these borrowers being in arrears of between 2.5% to 5% of the balance on the mortgage. This figure was slightly lower than for the same period last year.

Included in the figure of 76,270 there was a total of 27,910 mortgages for homeowners that were more seriously in arrears where the level of arrears equated to 10% or more of the balance outstanding on the mortgage. This was 630 more than in the first quarter of 2021.

The number of buy-to-let mortgages in arrears amounted to 6,020 with the level of arrears on those mortgages being 2.5% or more of the total amount outstanding on the mortgage. This was 50 more than in the first quarter of 2021.

In the second quarter of 2021, there were 210 mortgages for homeowners that were repossessed as well as 230 mortgages for buy-to-lets that were repossessed.

It should be borne in mind that a large number of mortgage customers received support between March 2020 and March 2021 if they suffered financial difficulty due to the pandemic and some will no doubt have received further individual support beyond that period. It will be interesting to look at future figures when they are produced. Will we see an increase in the number of residential mortgages falling into arrears and a larger number of properties being repossessed?

Mortgage Advice Compare Mortgage Lenders