There are 79,620 homeowner mortgages in arrears of 2.5% or more of the outstanding mortgage balance, at the end of December 2021. This is 750 fewer mortgages when compared to the previous quarter.
While those between 2.5% and 5% of balance in arrears, there is a decrease of 2% on the previous quarter and 14% reduction in yearly comparison. Homeowners with more significant arrears (representing 10% or more of the outstanding mortgage balance) has risen by 350 than the previous quarter.
The figures show there were a total of 6,010 buy-to-let mortgages in arrears in the fourth quarter of
2021 – an increase of 2% compared with the previous quarter but 1% down on the number a year
previously. When it comes to repossessions, the figures show that there were 390 homeowner mortgaged properties and 320 buy-to-let mortgaged properties taken into possession in the final quarter of 2021.
According to analysts, “As the UK walks headlong into a cost of living crisis, credit affordability is more important than ever, and we encourage credit providers, whether they be lenders or utility companies, to be looking closely at how innovations such as Open Banking can help them to identify people in need of help before they fall into acute financial difficulty.”
