UK Finance, the representative body for over 300 firms in the banking and finance industry, has recently disclosed alarming data concerning mortgage arrears for Q2 2023.

The data highlights a substantial 41% increase in buy-to-let mortgage arrears, specifically in the range of 2.5% to 5% of the balance. By the close of Q2 2023, mortgages in arrears made up 0.93% of all outstanding homeowner mortgages and 0.44% of all outstanding buy-to-let mortgages.

Breaking it down further, 8,980 buy-to-let mortgages showed arrears of 2.5% or more of the outstanding balance, reflecting a 28% spike from the previous quarter. Of these, 4,810 buy-to-let mortgages fell into the lightest arrears bracket, between 2.5% and 5% of the outstanding balance, marking a 41% rise from the last quarter.

On the homeowner front, 81,900 mortgages ended Q2 in arrears of 2.5% or more of their outstanding balance. This was a 7% increment from the preceding quarter. Notably, 30,940 of these homeowner mortgages were within the lightest arrears category, indicating a 12% increase from the last quarter.

In terms of property possessions, 610 homeowner-mortgaged properties were reclaimed in Q2, showcasing a decline of 19% from the previous quarter. Conversely, 440 buy-to-let mortgaged properties were acquired, reflecting a 7% rise from the last quarter.