Related Residential Property News
Mortgage Arrears and Repossessions Continue to Fall in Second Quarter of 2015
The repossession rates for homes in the UK has fallen again in the second quarter of the year with less owners falling behind on their mortgage repayments. Around 2,500 homes were repossessed in April, May and June, which was down from 3,000 in the previous quarter, according to the Council of Mortgage Lenders (CML). This also represented a fall from 5,400 in the same quarter last year.
Lenders have said that low interest rates were keeping the numbers down but homeowners must prepare for a rate rise. "This trend is very welcome. Low interest rates are acting as a significant support for homeowners in general, and are likely to be helping to stave off low level arrears for stretched households in particular," said CML director general Paul Smee. "As ever, we urge borrowers to think ahead to when interest rates rise, and to contact their lender without delay if they are in difficulty. Prompt action helps to prevent problems worsening."
Some 11.1 million mortgages are outstanding in the UK, with loans worth more than £1.3 trillion. The CML figures showed that 1,800 homes were repossessed from owner-occupiers, and 700 were seized from landlords in the buy-to-let market in the second quarter of the year.
The number of owners falling into arrears on mortgage repayments had also fallen in the second three months of the year compared with the first quarter, the CML said.