Britons falling behind on their mortgage payments

Thu 20 Jun 2024

More Brits are falling behind on their mortgage payments than at any point in the past seven years, according to the latest data from the Bank of England.

The lingering financial impact of the pandemic and soaring cost of living have left many struggling to cover basic expenses, let alone repay debts. The bank's report for Q1 2024 showed that mortgage balances in arrears rose by 4.2 % compared to the previous quarter, totalling a staggering £21.3 billion. This represents a shocking 44.5% increase from the same period last year.

Furthermore, the proportion of total loan balances in arrears relative to all outstanding balances also increased, rising from 1.23% in the last quarter to 1.28 %. This is the highest level seen since Q4 2016.

However, there was some positive news in the report. The outstanding value of all residential mortgage loans fell by 0.1% from the previous quarter, marking a 1.4 % decrease compared to a year ago. The total value of outstanding mortgages currently stands at £1,654.9 billion.