Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what the mortgage default rate is in the UK.

The latest available data from the Bank of England (published 14 June 2022) shows that the proportion of total mortgage loan balances with arrears in Q1 2022 was 0.82%, the lowest level since recording began in 2007. This is consistent with falling arrears levels over the previous 12 months.

The Government works closely with the regulators to monitor the resilience of mortgage borrowers and continues its efforts to support those in financial difficulty.

The Government offers Support for Mortgage Interest (SMI) loans to homeowners in receipt of an income-related benefit and protection in the courts under the Mortgage Pre-Action Protocol to help prevent repossession. This makes it clear that repossession must always be the last resort for lenders. Any borrowers worried about their mortgage payments should make early contact with their lender to discuss the forbearance options available to them.