The first quarter of 2024 saw a 4.2% increase in the value of outstanding mortgage balances with arrears from the previous quarter, hitting £21.3billion
Bank of England figures have revealed that the total value of outstanding mortgage balances with arrears has soared to its highest point since 2014.
The first quarter of 2024 saw a 4.2% increase in the value of outstanding mortgage balances with arrears from the previous quarter, hitting £21.3billion, according to Bank of England data. This marks a 44.5% annual increase and is the highest figure recorded since the third quarter of 2014.
Moreover, the share of total loan balances in arrears compared to all outstanding mortgage balances rose to 1.28%, reaching a peak not seen since the final quarter of 2016, the report highlighted. Simon Gammon, managing partner at Knight Frank Finance, said: “The proportion of the total loan balances in arrears is still relatively low at 1.28%, though Bank of England policymakers will be watching this data closely.”
He added: “Mortgage rates are currently trading sideways and barring any nasty surprises, should continue easing once the timing of the Bank of England’s first cut to the base rate becomes clearer. Anybody concerned about falling behind on their mortgage payments should contact their lender as early as possible.”
In response to the growing issue, many lenders have committed to a mortgage charter, with banks and building societies providing various options to support borrowers facing difficulties, tailored to individual circumstances.
