Don't bury your head - take advice asap

UK Finance figures revealed that in Q1 of 2023, there were 27,700 homeowner mortgages in the lightest arrears band – which represents between 2.5 and 5% of the outstanding balance – a figure 5% greater than Q4 2022. The stats also highlighted that 750 homeowner mortgaged properties were taken into possession in Q1, which reflected a significant 50% increase on the data for the previous quarter. 

 

Arrears and repossessions also affected the buy-to-let (BTL) market, with 7,030 BTL mortgages in arrears of 2.5% or more of the outstanding balance in Q1, a figure 16% higher than in Q4 of 2022. Alarmingly, there were 3,420 BTL mortgages in the lightest arrears band, a 33.1% increase on the previous quarter and sadly 410 BTL mortgaged properties were repossessed in Q1 of 2023, a figure which is 28% higher than in the previous quarter. 

 

Chief revenue officer at Phoebus Software, Adam Oldfield said “The figures from UK Finance this morning bear out the fact that increasing interest rates coupled with the rising cost of living is taking its toll. Unfortunately, with around 370,000 borrowers coming off fixed rate deals between April and June, the likelihood is that this trend will continue and is almost certainly going to get worse. This is especially true if, as many expect, the Bank of England continues to put the base rate up.” 

 

What to do if you are worried about your mortgage payments? 

 

Take advice. 

 

There are numerous debt counselling services who you can speak with for no cost. We also strongly recommend that you discuss your situation with your current lender. And of course to see what the rest of the market can offer at this time, maybe to lower or fix your mortgage payments to ride out this current rising crest, speak with a professional mortgage broker. 

 

( source https://moneyage.co.uk/mortgage-arrears-and-possessions-on-the-climb.php)