UK Finance, which is the collective voice for the banking and finance industry, representing more than 300 firms, and has published data revealing mortgage arrears in the second quarter of 2023.

The figures show a very large increase of 41% in buy-to-let mortgage arrears in the band between 2.5% and 5% of the balance.

Mortgages in arrears accounted for 0.93 per cent of all homeowner mortgages outstanding, and 0.44 per cent of all buy-to-let mortgages outstanding in the second quarter of 2023.

There were 8,980 buy-to-let mortgages in arrears of 2.5 per cent or more of the outstanding balance in the second quarter of 2023, 28 per cent greater than in the previous quarter.

Within the total, there were 4,810 buy-to-let mortgages in the lightest arrears band (representing between 2.5 and 5 per cent of the outstanding balance). This was 41 per cent greater than in the previous quarter.

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