Mortgage arrears surge as high interest rates strain homeowners and landlords

The number of mortgages in arrears has significantly increased, with buy-to-let mortgages more than doubling in the last quarter of 2023, reflecting the impact of rising living costs and interest rates.

• Buy-to-let mortgage arrears more than doubled in the final three months of 2023, with a 124% increase compared to the same period the year before.
• A total of 93,680 homeowner mortgages were in arrears in the fourth quarter of 2023, marking a 25% increase from the previous year.
• Repossessions of buy-to-let properties rose by 11%, while homeowner-mortgaged property repossessions saw a 14% decrease.
• Mortgage rates have been falling in recent months, potentially easing payment shocks for those with fixed-rate deals ending this year.
• Financial experts and UK Finance urge those struggling with mortgage payments to contact their lenders early for support, as doing so will not impact their credit score.

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