According to recent key figures, there has been a 2% quarter-on-quarter increase in homeowner mortgages in arrears of 2.5% or more of the outstanding balance, totalling 76,630 in the first quarter of 2023.

The lightest arrears band, indicating arrears of between 2.5 and 5% of the outstanding balance, has seen a 5% rise from the previous quarter, now comprising 27,700 homeowner mortgages.

Buy-to-let mortgages have also been affected, with 7,030 now in arrears of 2.5% or more of the outstanding balance in Q1 2023. This represents a 16% increase from the previous quarter. Specifically, within this total, 3,420 buy-to-let mortgages fall in the lightest arrears band, signifying an uptick of 33.1% from the last quarter.

Property possessions also saw a hike in Q1 2023, with 750 homeowner mortgaged properties taken into possession, representing a 50% increase from the previous quarter. Meanwhile, possessions of buy-to-let mortgaged properties rose by 28%, equating to 410 properties.

Despite these increases, Lee Hopley, Director of Economic Insight and Research, offered some perspective on the situation.

“The level of mortgages in arrears rose marginally in the first quarter of this year as the increased cost of living weighed on households’ incomes. However, the increase is small and the outright level is still lower than previous years,” he said.

While acknowledging the rise in repossessions, Hopley was keen to emphasise that “this is from a very low base as historic cases make their way through the courts. The total number of possessions remains significantly below the levels seen prior to the pandemic.”

He also reassured customers facing financial strain due to the rising cost of living, stating that “lenders stand ready to help anyone who might be concerned about their repayments.” Hopley’s advice for landlords echoes the sentiment of support for those struggling with bills, including mortgages, during these challenging economic times.