Target comments on UK Finance Arrears and Possessions data

07 November 2024

Following the release of the latest mortgage arrears and possessions data from UK Finance, we have a comment from Target Group.

Melanie Spencer, sales and growth lead at Target, said: “Following an unchanged picture last quarter, it is great to see the number of arrears cases now reducing for both homeowners and for buy-to-let. With the first base rate cut helping to start this positive momentum, the hope is that a similar decision today will sustain this and we see borrowing pressures continuing to ease and cases reducing further.

“There are still real difficulties though and lenders mustn’t forget those borrowers stuck in sizeable arrears. At more than 10% of the balance in arrears, homeowners and landlords facing these difficulties have very little movement and absolutely need urgent support from lenders. In supporting these customers, lenders need the right systems in place to manage this process proactively and provide a much need resolution for the borrower and for the lender too.

“From our own experience working with lenders, we know that repossession is always the very last tool they use. It’s encouraging to see today that they still make up a very small proportion of the overall borrowers and properties in arrears. Early contact and remediation is absolutely key in keeping repossession a last resort and achieving better outcomes for all parties.”