(MENAFN) According to recent industry data, there has been a notable increase in the number of properties experiencing difficulties with mortgage payments in the UK, alongside an 11 percent upsurge in repossessions of buy-to-let (BTL) properties.
UK Finance highlighted that escalating cost of living pressures and elevated interest rates continued to adversely affect borrowers throughout the final quarter of 2023, aligning with the organization's earlier forecasts. Their data revealed a 7 percent uptick in homeowner mortgages in arrears, totaling 93,680 compared to the previous quarter. Additionally, buy-to-let (BTL) mortgages falling more than 2.5 percent behind the outstanding loan balance saw an 18 percent increase.
Despite a 14 percent decrease in the repossession of homeowner-mortgaged properties to 540 during the period, there was a rise to 500 in the BTL category. However, UK Finance noted that these volumes remained relatively low when viewed against historical standards. Meanwhile, separate statistics from the Ministry of Justice underscored a 39 percent surge in mortgage possession claims, reaching 4,384 over the three months compared to the corresponding period last year.
Although there was a 9 percent increase in granted orders, totaling 2,702, there was also a notable 19 percent decrease in repossessions carried out by county court bailiffs. These trends collectively underscore the challenging financial landscape faced by property owners and investors, attributed in part to broader economic factors and market conditions.
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