Buy to let mortgage arrears dip

Data from trade body UK Finance has revealed a drop in the number of landlords in buy to let mortgage arrears for the last quarter of 2024, while BTL property possessions remained stable.

It says that the fourth quarter saw 12,610 BTL mortgages behind on payments by 2.5% or more, a 3% drop from the preceding period.

Within this figure, 4,810 mortgages experienced the smallest level of arrears (2.5% to 5%), a 5% reduction.

UK Finance says the number of buy to let properties repossessed was the same as the previous quarter – 700.

It adds: “Mortgages in arrears accounted for 0.65% of all buy to let mortgages outstanding in the fourth quarter of 2024.”

Homeowner mortgage arrears

UK Finance also reveals that homeowner mortgage arrears fell during the final three months of 2024.

There were 92,170 mortgages behind on payments by 2.5% or more, a 2% decline from the previous quarter.

Also, 31,720 of these fell into the lowest arrears category (2.5% to 5%), a 3% reduction.

It says that the arrears figure represents 1.06% of all outstanding homeowner mortgages.

While 1,030 homeowner properties were repossessed, a 12% increase from the previous quarter, this figure remains considerably below the long-term average.

UK Finance said: “Whilst possession numbers have risen significantly in percentage terms since the artificially low numbers through the pandemic, they remain very low by historic comparisons.”

The 6,440 possessions in 2024 were 20% lower than the five-year pre-2020 average and 87% below the 2009 peak.