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

Mortgage balances with some arrears at highest value since late 2016, Bank of England data shows

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.