UK mortgage arrears continue to fall

The latest data from the Council of Mortgage Lenders (CML) shows improved conditions in the UK mortgage market.

The repossession rate – already at its lowest since records began – continued to fall in the second quarter of 2015, according to latest data from the Council of Mortgage Lenders.

In that period, the rate was 0.02 per cent – equivalent to just 1 in 5,000 mortgages. Arrears also continued to fall.

There were 2,500 properties taken into possession in the second quarter, down from 3,000 the previous quarter and 5,400 in the second quarter of last year.

"Across all measures, mortgage arrears and repossessions are continuing to improve,” CML director general Paul Smee said.

“We continue to see some amplification of the downward trend in repossessions, which may bring into question our repossessions forecast for 2015 as a whole.

“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.

“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,” he said.

 

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