UK repossessions fall due to low interest rates

August 20, 2015 by Brendan O'Neill

Borrowers

Fewer people are falling behind with their mortgage payments, according to recently released data from the Council of Mortgage Lenders (CML). As a result the number of UK repossessions has also fallen.

The report from CML revealed that the number of repossessions fell in the second quarter of the year, compared to 2014 figures. The overall number of repossessions in the first two quarters of 2015 was also lower than in 2014. During April, May and June of 2014, 5, 400 homes were repossessed, against 2,500 in the same quarter in 2015.

According to lenders, the record low levels of interest rates were responsible for the lower numbers of repossessions, although a warning has been issued to home owners to be prepared for a rise in interest rates. The director general of CML, Paul Smee, said the low interest was supporting home owners, particularly those that are already stretched to breaking point. Smee added advice for anyone having difficulties making mortgage payments to contact their lender as soon as possible.

A report published by the Ministry of Justice demonstrated that the number of home owners who were at the initial stages of repossession had fallen during the second quarter of the year, although the number of tenants evicted from their homes had risen during the same quarter.

A home is one of the largest expenses for a person, which is why mortgage advisers undertake CeMAP training in preparation for helping families find the most suitable mortgage for their circumstances.