Mortgage arrears up in third quarter of 2023

Overall, 87,930 homeowner mortgages were in arrears in the quarter – seven percent more than the previous quarter – while there was a 29% increase in buy-to-let (BTL) mortgage arrears to 11,540 over the same period. These increases are driven by the combined impact of both cost-of-living pressures and high interest rates, with the rates pressure being felt in the BTL sector.  

The nearly 100,000 arrears seen across the mortgage market is also higher than the third quarter figures seen since 2016. Notably, however, the number of arrears to take place is significantly lower than the 207,200-figure seen in the third quarter of 2009, reflecting the benefits of lender stress tests carried out to ensure borrowers will be able to keep up with their mortgage payments.  

Lenders, meanwhile, took 630 homeowner mortgaged properties into possession in the third quarter of 2023 – nine percent fewer than in the previous quarter – while 450 BTL mortgaged properties were taken into possession during same period, with this remaining unchanged from the second quarter of 2023.  

UK Finance’s managing director of personal finance Eric Leenders said: “Anyone worried about making their mortgage payments should contact their bank as soon as they can. All lenders have teams of experts ready to help anyone struggling with their mortgage payments with tailored support.

“The sooner you get in touch, the more support options your lender will be able to offer. What’s more, reaching out to your bank to find out what support is available won’t affect your credit score.”