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The Guardian - UK
The Guardian - UK
Business
Phillip Inman

UK mortgage arrears rose 9.2% in 2023 last quarter amid ‘surge in borrowing costs’

a for sale sign outside one of a line of pastel-coloured terraced houses in Brighton – cream, pale blue, yellow, peppermint green and white, seen in close-up view of their ground and first floors to form an abstract image
More than 1.5m households are expected to re-finance their loans this year at higher mortgage rates. Photograph: Anthony Devlin/PA

Mortgage arrears jumped by 9.2% in the final quarter of 2023 and by 50% on the previous year, according to Bank of England figures that underscore growing stress in the UK mortgage market.

High interest rates and the rising number of people quitting the jobs market over recent months have put pressure on household disposable incomes, forcing some families to cut or suspend a range of monthly bills, including their mortgage payments.

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