Spicerhaart corporate sales comment on UK Finance mortgage arrears and possessions data

08 August 2024

Following the release of the latest mortgage arrears and possessions data from UK Finance, we have a comment from Spicerhaart Corporate Sales.

David Miller, divisional director at Spicerhaart Corporate Sales, said: “While the overall number of arrears remains relatively unchanged, it is encouraging to see those with arrears of up to 7.5% are reducing. Of course, there is clear concern around those in late arrears (7.5% or above), which only continues to rise. This growing cohort of borrowers are the ones that urgently need to seek support and lenders must stay close to.

“The upward growth of late arrears will be key driver in the rise in possessions, although it is positive to see they continue to account for a small proportion of the overall customers in arrears. It demonstrates that lenders are continuing to be proactive and proving that possessions remain a last resort.

“Even with positive news around the base rate and interest rates more broadly, there’s no question lenders need to keep this proactive approach, ensuring they not only have forbearance measures in place, but the right technology and partners to take action long before possession to ensure a positive outcome for both the lender and borrower.”