Mortgage repossessions rise by 56%

Latest data from the Ministry of Justice has shown that mortgage possession claims rose by 56% in the last quarter (July to September 2024) when compared to same quarter in 2023.

The latest quarter saw a total of 6,525 mortgage possession claims compared to the same quarter of 2023 (4,188) and a significant 77% increase from the same quarter of 2022 (3,681).

The data showed that mortgage possession claims for 2024 have hit 17,055. At the same point last year, the claims total stood at 12,214 – a 5,000 gap. London boroughs accounted for 6 of the 10 local authorities with the highest rate of mortgage possession claims.

Landlord repossession claims lifted 2% to 25,418 over the same period.

Tom Cuppello, Director, Risk at Broadstone said “With the volume of mortgage possession claims accelerating, the harsh reality of high-cost mortgages may have a long tail, as high interest rates continue to feed through.”

“The recent interest rate cut by the Bank of England was a welcome move, but with the bank now expected to take a much slower, more gradual approach to further cuts, relief for mortgage holders may be limited in the months and years ahead.

“The data underscores a growing challenge, with possession claims up 56% on last year and particularly acute in areas like London. Lenders need to be prepared to navigate this landscape, continuing to support borrowers facing financial strain while staying resilient against the pressures of rising possessions.”