UK Finance has released its latest mortgage arrears and possessions data for Q4 2023, revealing that the number of homeowner and buy-to let (BTL) mortgages in arrears has risen by 7% (to 93,680) and 18% (to 13,570), respectively, compared to the previous quarter.

The report also showed that 540 homeowner mortgaged properties were taken into possession in Q4, down 14% on the previous quarter, while 500 BTL mortgaged properties were taken into possession in Q4, 11% greater than the previous quarter.

The firm stated: ‘In recent months mortgage rates have been falling. This will help ease the payment shock for the 1.5m homeowners and 230,000 BTL mortgage holders whose fixed rate deals are due to end this year.’

Meanwhile, the number of possessions remains very low. Possession is only ever a last resort and after other options have been explored. Across BTL and homeowner mortgaged properties, a total of 1,040 were repossessed in Q4 2023. This compares with nearly 2,000 in Q4 2019 before the pandemic.