04 February 2025
Report: UK Mortgage Arrears Tick Up as Borrowing Costs Rise
Report summary: Pepper Advantage’s Q4 data reveals a mixed picture facing the UK mortgage market, with the rate of arrears for residential mortgages growing 2.4% following two consecutive quarters of decline. Overall arrears growth also increased, up 1.9% in Q4 compared to 0.1% in Q3. While modest, this growth in the arrears rate reflects a slight increase in the number of borrowers struggling to keep up with their mortgage payments, which may be a sign of underlying economic pressure. However, there was some sign of possible relief in the buy-to-let market, which saw arrears growth slow from 9.7% to 1.5%.
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