According to the trade body, there were 73,580 homeowner mortgages in arrears to this level in the second quarter of 2020, down by 3% on the same quarter in 2019. Within that there were 22,840 homeowners in mortgage significant arrears of at least 10% of the remaining balance, which was down by 2% year-on-year.

However, there was a rise in arrears levels among buy-to-let landlords. UK Finance found that there were 5,000 buy-to-let mortgages in arrears of 2.5% or more, 6% higher than during the corresponding three months of last year. Within that total, 1,270 buy-to-let mortgages were in arrears of at least 10% of the outstanding balance, up by 5% year-on-year.

The number of properties repossessed remains extraordinarily small, as a result of the industry moratorium on involuntary possessions. Just 90 homeowner mortgaged properties and 130 buy-to-let mortgaged properties were taken into possession over the quarter, down by 93% and 80% respectively on the second quarter last year. These were cases where the borrower requested the possession go ahead or where the property was vacant.