Home repossessions jumped in third quarter of 2022 – UK Finance

Posted on November 10, 2022Comments Off on Home repossessions jumped in third quarter of 2022 – UK Finance


The number of homes being repossessed jumped in the third quarter of this year, according to figures from a trade association.Some 700 homeowner-mortgaged properties were repossessed in the third quarter of 2022, which was 15% higher than in the previous quarter, UK Finance said.Meanwhile, a total of 390 buy-to-let-mortgaged properties were repossessed in the same period, which was up by 11% compared with the previous quarter.Mortgage rates have climbed as the Bank of England base rate has risen in recent months. There was also a jump in mortgage rates amid the market turmoil which followed the mini-budget earlier this autumn.700 homeowner-mortgaged properties390 buy-to-let-mortgaged propertiesRead MoreLast week, the Treasury Committee heard evidence suggesting the buy-to-let sector could be particularly hard hit by rising mortgage rates.Ray Boulger, senior mortgage technical manager at broker John Charcol, told the committee last week: “I think the buy-to-let market is where we’re likely to see a lot more stress than the residential market.”Property agents Savills recently predicted that UK house prices could fall by about 10% next year before starting to recover in 2024.First-time buyers and buy-to-let investors will bear the brunt of increased affordability issues next year, adding to pressures on rental prices, according to predictions by Savills.UK Finance’s figures also showed that 74,440 homeowner mortgages were in arrears of 2.5% or more of the outstanding balance in the third quarter of 2022, which was 1% fewer than in the previous quarter.Within the total, there were 28,910 homeowner mortgages with more significant arrears, of 10% or more of the outstanding balance.This was broadly unchanged from the previous quarter when the figure was 29,030.Meanwhile, 5,760 buy-to-let mortgages were in arrears of 2.5% or more of the outstanding balance in the third quarter of 2022, which was 2% more than in the previous quarter.Within the buy-to-let mortgages arrears total, there were 1,780 loans with more significant arrears, representing 10% or more of the outstanding balance. This was 1% fewer than in the previous quarter.

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Comments Off on Home repossessions jumped in third quarter of 2022 – UK Finance