13th August 2015
New numbers from the Council of Mortgage Lenders show that home repossessions, which are already at their lowest level since its records began, continued to fall during the second quarter of 2015.
During the April to end of June period, the repossession rate reached just 0.02% – equivalent to just one in 5,000 mortgages.
There were 2,500 properties taken into possession in the second quarter, down from 3,000 the previous three months and 5,400 on the same period last year.
Of these 2,500, some 1,800 were in the owner-occupier market, and 700 in the buy-to-let sector.
In terms of arrears, CML data showed that the total number of mortgages with arrears equivalent to 2.5% or more of the mortgage balance was 106,400, equating to 0.96% of all mortgages – again, the lowest rate since quarterly records began in 2008.
Of all loans with arrears of more than 2.5% of balance, 100,700 were owner-occupier, and 5,700 buy-to-let. In both the owner-occupier and buy-to-let markets, the number and proportion of mortgages in arrears fell or remained static in all arrears bands – none experienced a worsening.
Commenting on the data, CML director general Paul Smee said: “Across all measures, mortgage arrears and repossessions are continuing to improve. 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 home-owners 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.”