UK Finance data has revealed that in the first quarter of 2023 the number of both homeowner and buy-to-let mortgages in arrears saw an uptick.
The number of homeowner mortgages in arrears of 2.5% or more of the outstanding balance increased to 76,630, marking a 2% rise from the last quarter of 2022.
Within these figures, 27,700 homeowner mortgages fell into the lighter arrears band (accounts owing between 2.5% and 5% of the outstanding balance). This segment saw a 5.0% increase from the preceding quarter.
The buy-to-let sector also reported similar trends. The number of buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance reached 7,030, a significant jump of 16% from the previous quarter.
Of these, 3,420 buy-to-let mortgages landed in the lighter arrears band, surging by a substantial 33.1% from the last quarter.
Q1 2023 also showed an upward trend in possessions. A total of 750 homeowner mortgaged properties were taken into possession, reflecting a steep 50% increase from the previous quarter.
Meanwhile, the buy-to-let sector had 410 properties taken into possession, up by 28% from Q4 2022.
