Homeowner mortgage arrears climb 7% in fourth quarter

The number of UK mortgages in arrears increased by 7% in the fourth quarter of 2023, though the number houses taken into possession fell sharply.

Some 93,680 homeowner mortgages were in arrears of 2.5% or more of the outstanding balance between October and December, up from 87,930 in the third quarter.

However, compared with the fourth quarter of 2022, that number has grown by 25%.

The number of buy-to-let mortgages in arrears of 2.5% of more totalled 13,570 in the fourth quarter, up 18% on the previous quarter and 124% higher than the previous year.

In terms of possessions, just 540 homes with homeowner mortgages were possessed in the period, down 14% over three months and 5% lower than the year before, while 500 properties with buy-to-let mortgages were possessed, up 11% on the quarter and 56% higher over the year.