NEW data shows a surge in properties falling behind on mortgage payments, with an 11 per cent rise in repossession of buy-to-let (BTL) properties.

UK Finance, a trade association for the UK banking and financial services sector, attributed this to cost of living pressures and higher interest rates.

Homeowner mortgages in arrears increased by seven per cent to 93,680, while BTL mortgages behind by more than 2.5 per cent rose by 18 per cent.

Although homeowner possessions decreased by 14 per cent to 540, there was an increase to 500 in the BTL category.

Possession rates due to mortgage arrears in North and West Cumbria showed a mild peak in the third quarter of 2022, which points to cost of living pressures worsening with higher prices for petrol, energy, and food attributed to the war in Ukraine.

Data from each of the areas that were covered by North and West Cumbria’s local authorities – Carlisle, Eden, Allerdale, and Copeland – which were active before Q2 of 2023 when Cumberland Council came into being, showed this.

Data from Q2 of 2023 to Q4 of the same year for mortgage repossessions that happened in the area covered by Cumberland Council showed a peak in Q3 which has since dropped.

Despite low volumes compared to historical standards, Ministry of Justice figures show a 39 per cent rise in mortgage possession claims and a nine per cent rise in orders granted nationally.

Debt charity StepChange reports that one in four mortgage holders has used credit to afford payments over the past year.

Since the Bank of England's first move to tackle inflation in December 2021, borrowing costs have risen.

It raised the Bank rate 13 times in response to the cost of living crisis following Russia's invasion of Ukraine.

Although mortgage rates have fallen in recent months, the average fixed-rate deals remain above five per cent.

UK Finance said of borrowing cost outlooks to Sky News, that mortgage costs fell in recent months, which will help ‘ease the payment shock for the 1.5million homeowners and 230,000 BTL mortgage holders whose fixed-rate deals are due to end this year’, but: “We know that other factors outside the control of lenders can also impact customers' ability to manage their mortgage payments, so we would encourage anyone worried about their finances to reach out to their mortgage lender at the earliest opportunity to discuss the options available for their circumstances."

Alastair Douglas, chief executive of TotallyMoney, said the trend of more homeowners and landlords falling into arrears is expected to continue as ‘1.7million cheap fixed-rate deals come to an end this year’.

"If you're somebody who's struggling, contact your lender and ask for support - and remember this won't impact your credit rating," he said.