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There were 93,630 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in the third quarter of 2024, this was 3% fewer than in the second quarter of 2024.

This is according to the latest data from UK Finance, which also reveals that within the total, there were 32,860 homeowner mortgages in the lightest arrears band (representing between 2.5- 5% of the outstanding balance). This was 5% fewer than in the previous quarter.

There were 13,000 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance in the third quarter of 2024, 4% fewer than in the previous quarter.

Within the total, there were 5,070 buy-to-let mortgages in the lightest arrears band (representing between 2.5- 5% of the outstanding balance). This was 10% fewer than in the previous quarter.

Mortgages in arrears accounted for 1.08% of all homeowner mortgages outstanding, and 0.67% of all buy-to-let mortgages outstanding in the third quarter of 2024.

Some 990 homeowner mortgaged properties were taken into possession in the third quarter of 2024, 1 % greater than in the previous quarter.

Commenting in the latest numbers, Spicerhaart Corporate Sales divisional director  David Miller said: “It’s really positive to see the number of arrears cases falling almost across the board. Not only is a great sign of lenders acting early to support cases, it demonstrates the positive changes we’ve seen in the market – helping borrowers access products at a better price.”

He added: “Of course, attention will be on those in the highest arrears band of 10% or more, the only band to see a quarterly increase. With refinancing not always an option and customer vulnerability a clear concern, the hope is that lenders are already engaging with this growing cohort of customers. While options can become more limited in these higher bands, there are opportunities for good outcomes still available, particularly through the likes of an assisted sale scheme.”

Fignum commercial director Josh Skelding commented: “Although many households are still battling with affordability challenges, today’s data hints that the weight of high rates and rising living costs is finally starting to lift.

“Although both homeowner and buy-to-let possessions have increased steadily this year, these numbers remain significantly lower than long-term averages, with a more positive outlook ahead as interest rates stabilise. However, there are still certain segments of the market who may need more support, and lenders must stay closely connected with their buy-to-let customers.”