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Repossessions and buy-to-let arrears on the rise

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The number of mortgaged properties taken into possession rose by 15% in Q2 compared to the same quarter in 2018, according to the latest data from UK Finance. 1,270 were repossessed in the quarter, however UK Finance says the figure remains "well below the levels seen between 2009 and 2014" and attributed the rise to a backlog of historic cases which are currently being processed. 590 buy-to-let mortgaged properties were taken into possession in the second quarter of 2019, 2% more than in the same quarter of the previous year.

Additionally, there were 4,660 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance in the second quarter of 2019 - an annual rise of 5%. Within the total, there were 1,200 buy-to-let mortgages with more significant arrears (10% or more of the outstanding balance on the mortgage), 12% higher than in Q2 2018.

There was a 3% fall in the total number of residential mortgages in arrears of over 2.5% and a 2% fall in the number with significant arrears. Separate research  shows that the number of second charge repossessions in Q2 was 24, 38.5% lower than in 2018.

Posted by MMB Finance Swindon on 9 August 2019