Further Decline in Mortgage Arrears and Repossessions
May 15, 2015 |
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According to the latest figures from the Council of Mortgage Lenders (CML), the proportion of British mortgages in serious arrears has fallen to the lowest levels recorded since 2008, declining in all bands – and across both owner-occupier and buy-to-let lending – in the first quarter of 2015.
Arrears in the most severe bracket, where the equivalent of 10% or more of the outstanding balance is owed, has now fallen for the eighth consecutive quarter. It now equates to just 0.22% of all mortgages.
The total proportion of all mortgages with arrears equivalent to more than 2.5% of the mortgage balance was recorded as 1.03% at the end of Q1 – down from 1.05% from the final quarter of 2014, and a decline of 0.21% since the same time the previous year. The total number of mortgages in arrears now stands at 113,900.
Repossessions were also shown to have fallen, with the proportion of mortgages resulting in repossessions in Q1 being just 0.03% – down from 0.04% in the previous quarter. The number of repossessions has more than halved since Q1 2014, falling from 6,400 to 3,100.
CML director general Paul Smee commented: “Although complacency would be misplaced, the underlying picture continues to be one of improvement and a continuing reduction in mortgage arrears and repossessions. The message remains the same: don’t delay in contacting your lender if you are experiencing temporary payment problems, as lenders want to help you resolve them, and will only take possession of property as a last resort.”