Mortgage Arrears and Repossessions Fall

Mortgage Arrears and Repossessions Fall.

The Council of Mortgage Lenders (CML), the organisation that represents the U.K.'s leading banks, building societies and other lenders with around 11 million mortgages currently in the United Kingdom, has confirmed that the number of mortgages in arrears and repossessions has fallen for the first three months of 2015.

The number of repossessions fell to 3,100 from 6,400 for the same period last year. This represents just 0.03% of total mortgages.

The number of mortgages in arrears fell to 113,900, around 1% of all mortgages in existence. This is the lowest rate of mortgages in arrears since 2008.

The reasons for this are no doubt that interest rates remain low, wages have been rising albeit slowly, the cost of living is stagnant water indeed has marginally reduced given that inflation for the year to April 2015 was -0.1% meaning that prices have fallen.

In addition, we believe that as a general rule the public appear to be managing their finances on a more structured basis given that we have all been through difficult times through the credit crunch of the last six years or so.

That said, we would urge all people with debt to ensure that they have adequate protection in the event of difficult times by having things like mortgage protection life insurance, critical illness insurance, income replacement/protection insurance and some form of redundancy protection (if you are employed) as well as at least six months living expenses as an emergency fund.

If you would like advice in connection with protecting you and your family and your mortgage for any of the above insurance policy types please do not hesitate to contact us for unbiased, independent financial advice.