Spicerhaart CS comments of UK Finance Arrears and Possessions data

06 February 2025

David Miller, divisional director at Spicerhaart Corporate Sales, said:

“We can be really encouraged by the fact that the number of arrears cases is decreasing, both on a quarterly and annual basis. While this is true for the lower arrears bands, numbers in the highest arrears band only continues to grow, which is likely to contribute to the rise in possessions. While perhaps with fewer options in terms of refinancing, they are certainly the ones that need the greatest support from lenders.

“Given the FCA’s recent communications with mortgage intermediaries, it’s abundantly clear that Consumer Duty remains their priority, along with minimising potential harm and poor outcomes – particularly for vulnerable customers. With all of financial services facing this same remit, it’s never been more important for lenders to have options in place to support clients in difficulty and deliver positive outcomes, with an assisted sale scheme being a clear example.

“As demonstrated in today’s figures with possessions still making up a small proportion of cases, lenders continue to do all they can to ensure that this is the last resort that it should be. We’re definitely seeing all the hard work of lenders helping customers that accept support and that is demonstrated in today’s figures. Part of this comes from robust forbearance measures, as well as the availability of good technology and intelligence, and the right partners in the market to help build a proactive strategy to support clients in difficulty and assess the value and any potential risk found in a lender’s portfolio.”