StepChange Debt Charity reports 82% rise in mortgage arrears

^{6 February 2025}

UK Finance has released its latest data on mortgage arrears for the final quarter of 2024. While there has been an overall slight fall in the total number of homeowner mortgages in arrears, the figures show a worrying 9% year-on-year rise in the worst arrears band of 10% of more of the mortgage balance. While these numbers are small overall, the problem for affected households is severe.

StepChange Debt Charity’s own data for the same period shows a concerning rise in the average amount of mortgage arrears among its clients struggling with problem debt, with average mortgage arrears rising by 82% year on year, to £11,845 in Q4’2024.

These new figures come as the Bank of England is expected to announce that the bank rate will fall to 4.5% today.

Richard Lane, Chief Client Officer at StepChange, said:

"The decline in UK homeowner mortgages in arrears, coupled with the expected drop in interest rates today, offers some reassurance for homeowners. Yet the effect of high rates and wider cost of living pressures has had a serious impact on some households. Our data shows a huge jump in the average amount of mortgage arrears new StepChange clients are presenting with, which will make their debt problems much more difficult to overcome. For these mortgage holders the problem is acute, and with interest rates not expected to decrease as rapidly as they increased, more households are at risk of long-term financial hardship.

"If you're having trouble keeping up with mortgage payments, or are concerned about debt, don't hesitate to contact your creditors for assistance. Mortgage lenders are required to help borrowers facing challenges and might offer forbearance options. Additionally, StepChange provides free and impartial debt advice, including guidance on mortgage debt, for those who are struggling."

Notes to Editors

• UK Finance mortgage arrears and possessions data can be found here.