Mortgage arrears among StepChange clients up three percentage points year on year

StepChange, a debt advice charity, published its monthly client data report for May 2024 on 1 May 2024. Among clients with a responsibility for paying a mortgage, 18% were in arrears with that bill, compared with 15% in May 2023, a rise of three percentage points¹.

The report covers new clients who first received debt advice in the month. The number of clients accessing full debt advice in May 2024 was 13,692, which the charity says is 12% lower than the 15,483 seen in May 2023¹.

Two other measures of why clients sought help also rose year on year. One in seven clients, 14%, named unemployment or redundancy as their main reason for debt, two percentage points higher than the 12% recorded in May 2023. One in ten clients, 10%, named a reduced income or benefits as their main reason, also two percentage points higher than the 8% a year earlier¹.

The charity's emergency funding webpage remained its most viewed debt information page, with 19,016 views in May 2024, which it describes as in line with the 19,087 views seen in May 2023¹.

Why it matters for households

The figures describe a specific group: people who have already sought debt advice from StepChange and who are responsible for paying a mortgage. They do not measure mortgage arrears across all UK borrowers, and no figure for the wider mortgage market appears in the report¹.

For a household in that position, mortgage arrears is a distinct problem from other missed bills, because the lender can take possession action. Our guide to mortgage arrears sets out the steps lenders are expected to follow, and what a time order does if a case reaches court. Arrears can also lead to fees, which we cover in arrears charges, and they stay on a credit file for a set period, explained in how long arrears stay on your credit file.

The report also points to pressure on income rather than borrowing alone. Unemployment or redundancy and reduced income or benefits were each cited by more clients as their main reason for debt than a year earlier¹. Households in arrears may be able to use breathing space for temporary protection from creditor action, and there are rescue schemes for homeowners including Mortgage to Rent and support funds. Extending a mortgage term is another option lenders sometimes consider, covered under mortgage terms and extensions.

What happens next

StepChange publishes this report monthly, and says this is the latest in the series¹. No further dated announcements are set out in the report.