According to a trade association “mortgage arrears” are on the rise and “repossessions” have increased in the first quarter of 2023.
In the first quarter of this year the number of mortgaged properties being repossessed jumped to 50%, UK finance said.
In the first quarter homeowner mortgaged properties being repossessed totalled 750 and the number of buy-to-let’s has also seen an increase repossessions.
In the first quarter of this year 410 buy-to-let mortgaged properties were repossessed, compared to 28% the previous quarter which is a further sign that people are struggling amid the cost of living crisis.
UK Finance said that there is a total of 28,180 mortgages which are in the severest band of of having outstanding balances.
Lee Hopley, director of economic insight and research at UK Finance, said: “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.
“While the number of repossessions increased, it’s important to note 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.
“As the cost-of-living challenges persist, customers may find themselves struggling with a range of bills including their mortgage. Lenders stand ready to help anyone who might be concerned about their repayments.”
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