Arrears and Repossession Numbers Fall

Arrears and Repossession Numbers Fall.

Figures released today by the Council of Mortgage Lenders (the organisation representing most mortgage lenders) has found that both mortgage arrears and property repossessions fell again in the second quarter (April to June) this year.

• 131,400 mortgages i.e. 1.18% of all mortgages (down from 1.24%) are in arrears by 2.5% or more of their outstanding balance
• 5,400 properties were repossessed, representing 0.05% of all mortgages, a fall from 6,400 (Jan to Mar) and 7,600 the same time last year.

Comment

We see these figures as a threefold result:

Lenders are being more sympathetic to repossession as property prices are rises, this reducing their bad debt risk and are working more closely with people in difficulty given the new MMR Mortgage Market Review rules on suitable and affordable lending

People are managing their finances better with less unemployment meaning more people are paying their mortgage

People are already planning for higher interest rates, so are overpaying now to pay back arrears where possible and getting used to meeting higher payments when rates rise.