The levels of UK home repossessions and mortgage arrears have continued to decline throughout the second quarter of this year.
According to figures from the Council of Mortgage Lenders, or CML, total arrears are now lower than they have been since the first three months of 2008. Repossessions during the first half of 2014 decreased to a level not seen since 2006.
At the end of June this year, just 1.18% of UK mortgages were in arrears amounting to 2.5% or higher. This represents a reduction of 1.24% when compared with figures from three months ago and a drop of 1.38% in comparison with data from one year previous.
Out of all UK mortgages, just 0.05%, representing 5,400 homes, were repossessed during the second quarter of 2014, compared with 6,400 in the first quarter and 7,600 12 months ago. The figure of 11,800 repossessions seen in the first six months of this year represents the lowest level since the six-month period leading up to the end of 2006.
Paul Smee, director general of the CML, said that the reductions in repossessions and arrears were “clearly welcome”, but warned that borrowers would need to prepare for interest rate rises that are expected “at some stage”.
Home buyers who want to avoid the risk of falling into arrears may decide to turn to a professional for advice when looking for the best available loan. An adviser who is CeMAP accredited will be suitably qualified to provide the guidance that is needed.
