In the last three months of last year, mortgage properties jumped more than half from more than half 12 months ago, as regulators warned parliament that those levels would rise if loan restrictions were alleviated.
According to UK financial data, homeowners’ property rose 54% to 1,030 in the fourth quarter of 2024 and increased 12% from the previous three months.
It added that landlords of 700 in the fourth quarter increased by 30% from the same period last year, but did not change compared to the previous quarter.
Banking institutions said the homeowner and purchase box office merger in the fourth quarter of 2024 was 87% lower than the 13,200 properties seen in the aftermath of the financial crisis in the first quarter of 2009 and 13% lower than 1,990 people. Before the last pandemic of 2019.
However, the rise in property is due to the financial conduct authorities and the Bank of England warning that easing restrictions on key mortgages, such as loans to income levels, will lead to higher property.
Last week, Bank of England Governor Andrew Bailey said the trade-off between higher collections and more people entering the mortgage market needed a “public debate” due to lower stress tests.
However, today’s UK financial data also suggests that in the fourth quarter of 2024, the 92,170 homeowners mortgages owed were 2.5% or more, down 2% from the previous quarter.
It added that debts arrears were 2.5% or more in the fourth quarter, down 3% in the previous quarter.
Melanie Spencer, head of sales and growth at the target group, said: “The number of default cases was declining last quarter and they were still moving in the right direction.
“As the UK cuts a series of basic tax rates this year, borrowing pressures should be alleviated. The increase in government spending announced in the October budget should also drive support for borrowers. In theory, cases should be reduced.”
Richard Pike, director of sales and marketing for Phoebus software, added: “Since the economic landscape is still flat at best, it will be crucial to keep the debt levels under control. The lowered interest rates this afternoon will provide much-needed relief for variable rates.
“The effect of loosening the origin standards of some lenders will take some time to flow into portfolio performance.”
Charles Roe, UK financial director, noted: “The number of mortgages owed has dropped slightly compared to the previous quarter.
“After peaking in the first quarter of 2023, the debts appear to be in a confirmed downward trend.
“This reflects the fact that, despite the pressure still, the challenges of higher interest rates and cost of living have begun to ease.”
