The number of homeowner-mortgaged properties being repossessed jumped 39% in the third quarter of 2024 compared to the same period a year earlier, according to a body representing the banking and finance sector.

Some 990 homeowner properties were repossessed in the third quarter – a 1% increase compared with the second quarter of this year, according to figures from UK Finance.

Meanwhile, 710 homes with mortgages taken out by landlords in the buy-to-let sector were repossessed in the third quarter, marking a 73% annual increase. The total was in line with the previous quarter as there was a 0% quarterly change.

The effect on private renters can also not be underestimated

Some 93,630 homeowner mortgages were in arrears of 2.5% or more of the outstanding balance in the third quarter of 2024, 3% fewer than in the previous quarter but 8% higher when compared with the third quarter of 2023.

The number of homeowner mortgages in the most serious arrears bracket of over 10% of the balance totalled 33,070 in the third quarter of 2024.

This was 13% higher than the same quarter a year earlier and 1% higher than the second quarter of this year but buy-to-let mortgage arrears fell compared with the previous quarter.

There were 13,000 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance in the third quarter of 2024, 4% fewer than in the previous quarter but 19% higher than a year earlier.

Some 3,140 buy-to-let mortgages were in the most serious arrears bracket of over 10% of the balance – 11% higher than the previous quarter and a 54% increase compared with a year earlier.

The figures came as StepChange said its client data indicates that among those with a mortgage seeking debt advice, mortgage arrears have been steadily rising this year.

Average arrears per StepChange client stand at £9,657 – a 68% annual rise.

This has had a knock-on effect on people’s ability to keep up with bills and repay other debts as they prioritise keeping a roof over their head

Richard Lane, chief client officer at StepChange, said: “Thousands of mortgage holders have faced new fixed-rate deals over the past year or two, with monthly payments eating up a much larger proportion of their income.

“This has had a knock-on effect on people’s ability to keep up with bills and repay other debts as they prioritise keeping a roof over their head.

“The effect on private renters can also not be underestimated – many landlords have passed on higher debt servicing costs to tenants, making their rental payments increasingly unaffordable.

“For anyone struggling with ongoing mortgage payments and housing costs, or worried about debt – don’t hesitate to reach out to your creditors and ask for help.

“Mortgage lenders have a regulatory responsibility to support borrowers who’re struggling, and may be able to provide forbearance.”