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The number of home repossessions has soared, with claims by lenders seeking to seize mortgaged properties hitting their highest level in five years.

New figures show that in the second quarter of 2024, mortgage possession claims increased by 34 per cent year-on-year – up from 3,991 to 5,343.

Claims occur when banks or lenders or landlords take homeowners to court before repossessing their home, because the owners have fallen behind on their mortgage repayments.

A successful claim in court leads to repossession. In total, 980 mortgaged properties were repossessed in the second quarter of this year, up 8 per cent compared with the previous quarter – and a 31 per cent rise compared with the same period last year.

A further 710 buy-to-let (BTL) mortgaged properties were also repossessed – 13 per cent higher than in the previous quarter and 51 per cent up on the year before.

Possession claims by landlords also increased as private and social tenants struggled to make rent payments. The rose by 9 per cent year on year to 24,495 – among the highest point since 2019.

The data was released by UK Finance, which represents the banking and finance industry.

Increases in claims were recorded in all regions except Wales. Private landlord and mortgage claims remained concentrated in London.

Blackpool had the highest overall rate of mortgage repossession: 77 per 100,000 households owned by a mortgage or a loan.

Private landlord repossessions in the east London borough of Newham topped the table: 202 per 100,000 owned by private landlords.

Malvern Hills District Council in Worcestershire saw the highest social landlord repossessions: 180 per per 100,000.

UK Finance said the jump in cases was largely due to courts increasing their capacity to work through older arrears cases. The overall proportion of mortgages in arrears remains low, it added, at 1.10 per cent of homeowner mortgages and 0.69 per cent of BTL mortgages.

The group added that the total volume of loans in arrears has been kept in check by the large number of fixed-rate mortgage deals that have yet to renew, as well as stricter affordability rules designed to ensure borrowers can cope if interest rates increase.

Regulators also introduced guidance to avoid possession proceedings during the height of the pandemic. And Britain’s biggest banks agreed last year to offer grace periods of up to a year to help those struggling to make payments amid the cost of living crisis.

Charles Roe, UK Finance’s director of mortgages said: “The number of mortgages in arrears has remained broadly flat compared to the previous quarter, which is good news following recent increases. This reflects the fact, that while many households remain under pressure, the challenges of higher rates and the cost of living have begun to ease.

“However, we know that this will not be the case across all households, and lenders want to support anyone who might be struggling. Lenders offer a range of support to anyone worried about their finances. If you are worried about your finances, please reach out to your lender as soon as possible to discuss the support options available. Doing so won’t affect your credit score.”



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