UK Finance has released its latest figures for mortgages in arrears. Homeowners continue to keep up mortgage repayments in full and on time as mortgage arrears continue to remain at low levels.
UK Finance is the collective voice for the banking and finance industry and represents more than 250 firms across the industry, acting collectively to enhance competitiveness, support customers and facilitate innovation.
In the 3rd quarter of 2019, there were 71,590 homeowner mortgages in arrears of 2.5% or more of the outstanding balance which is 9% fewer than in the same quarter of 2018.
That said, there was 1,330 mortgaged properties taken into possession in the 3rd quarter of 2019 which is 19% higher than the same quarter in 2018.
There were 4,550 buy to let mortgages in arrears of 2.5% or more in the 3rd quarter of 2019 which is 5% lower than the same quarter in 2018.
In the 3rd quarter of 2019 800 buy to let mortgaged properties were taken into possession, which is 40% more than the same quarter of 2018.
Interest rates continue to be low so mortgages are currently broadly affordable as well as mortgage lending rules introduced after the credit crunch crisis enforce affordability checks on both lenders and mortgage brokers. We are mindful of any Brexit fall out and recession that may make this position worse in the months to come.