fbpx

Mortgage arrears are now at a record low

According to data released by the Council of Mortgage Lenders, the number of mortgages which are in arrears is at its lowest since 1994.

During the quarter ending June 2016, there were 92,500 mortgages in arrears, which is 13.4% fewer than last year. The number of repossessions made by lenders is also at its lowest level, and is on course to be at the lowest level since 1982. This year, so far, the number of repossessions stands at just 4,000.

The number of repossessions of buy-to-let and owner-occupier homes fell in the second quarter, with 1,900. In 1982, there were 6,900 repossessions, although there were far fewer mortgages, with 6.5 million compared with today’s figure of 11.1 million.

As the Bank of England base rate was recently cut to 0.25%, it is likely that home owners will find their monthly repayments becoming cheaper, making them more affordable. However, the director of Anderson Harris mortgage brokers, Jonathan Harris, warned that people shouldn’t become complacent as there are still many home owners who find themselves facing difficulties with their mortgage repayments, causing concern for what will happen if interest rates do rise in the future.

Harris stated that home owners should plan ahead and decide what they would do if the interest rates were to increase, perhaps applying for a fixed rate mortgage to maintain the stability of payments for a fixed period.

As mortgage advisers study on a CeMAP training course, they are fully qualified to help people find the most suitable mortgage for their requirements.

Share:

Facebook
Twitter
Pinterest
LinkedIn
Mortgage2
Related

Related Posts

CeMAP Course Online pop up
Update cookies preferences