The total value of outstanding mortgage balances with arrears has reached its highest level since 2014, according to Bank of England figures.
In the first quarter of 2024, the value of outstanding mortgage balances with arrears increased by 4.2% from the previous quarter, to £21.3 billion, the mortgage lenders and administrators statistics showed.
This was also a 44.5% annual increase and the highest level since the third quarter of 2014.
The proportion of the total loan balances with arrears, relative to all outstanding mortgage balances, increased to 1.28%, the highest level since the fourth quarter of 2016, the report said.
Simon Gammon, managing partner at Knight Frank Finance, said: “The proportion of the total loan balances in arrears is still relatively low at 1.28%, though Bank of England policymakers will be watching this data closely.”
Anybody concerned about falling behind on their mortgage payments should contact their lender as early as possible— Simon Gammon, Knight Frank Finance
He continued: “Mortgage rates are currently trading sideways and barring any nasty surprises, should continue easing once the timing of the Bank of England’s first cut to the base rate becomes clearer.
“Anybody concerned about falling behind on their mortgage payments should contact their lender as early as possible.”
Many lenders have signed up to a mortgage charter. Banks and building societies offer a range of options for struggling borrowers, tailored to their needs.
