Data shows an increase in homes being repossessed.

The recent UK Finance report indicates a significant increase in home repossessions for the first quarter of 2024. The data reveals that 870 homeowner-mortgaged properties were repossessed, a 36% increase from the previous quarter and a 9% rise compared to the same period last year. This spike can largely be attributed to older arrears cases finally progressing through the court system, which had been delayed due to the pandemic​ (UK Finance)​​.

This trend highlights the ongoing financial pressures many are facing, with the rising cost of living and higher interest rates making it increasingly difficult for some to keep up with their mortgage payments. While the number of properties being repossessed has increased, it’s essential to note that these figures remain low compared to historical norms, particularly the levels seen during the global financial crisis of 2008-2009​ (Yahoo Finance)​.

The current situation underscores the importance of early intervention for those struggling with their mortgage payments. Lenders are offering various forms of support, from payment holidays to restructuring loans. Homeowners are encouraged to contact their lenders as soon as they anticipate any difficulty in making payments, as doing so will not impact their credit score. The earlier the communication, the more options are available to prevent repossession​.

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