There were 73,580 homeowner mortgages in arrears of 2.5% or more in Q2 of 2020.
There were 73,580 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in Q2 of 2020, 3% fewer than in the same quarter of the previous year, according to research by UK Finance.
The Mortgage Arrears and Possessions report found that mortgage lenders offering payment deferrals to customers and buy-to-let landlords has lead to mortgage arrears remaining low in Q2 2020 as a result.
More than two million mortgage payment deferrals have been approved to date, with just under one million still in place as borrowers begin to exit their payment deferral arrangements and resume monthly payments.
Within the total, there were 22,840 homeowner mortgages with more significant arrears, representing 10% or more of the outstanding balance.
This was 2% fewer than in the same quarter of the previous year.
The number of homeowner arrears increased in Q1 2020, likely due to the early effects of COVID-19, and have remained at similar levels in Q2 2020.
These levels of arrears remain significantly lower than those seen in previous years.
There were 5,000 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance in the second quarter of 2020, 6% greater than in the same quarter of the previous year.
Within the total, there were 1,270 buy-to-let mortgages with more significant arrears, representing 10% or more of the outstanding balance.
This was 5% greater than in the same quarter of the previous year.
This recent increase in buy-to-let arrears is relatively small and from a low-base, and is likely due to the early effects of COVID-19.
Again, these levels of arrears remain lower than seen in previous years.
90 homeowner mortgaged properties and 130 buy-to-let mortgaged properties were taken into possession in the second quarter of 2020, some 93% and 80% fewer, respectively, than in the same quarter a year earlier.
Following the industry moratorium on involuntary possessions, these low possessions numbers in Q2 2020 reflect cases where the customer requested the possession to go ahead or where the property was vacant.
