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Mortgage Arrears and Possessions Are at an “All-Time Historic Low”

13 August 2018 Written by Prosperity Financial Solutions Category: Mortgages

According to the latest UK Finance data for the second quarter of 2018, mortgage arrears and possessions are at a historic low. 

The data shows:

  • There were 76,740 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in the second quarter of 2018 – 8% lower than in the same quarter in 2017. 
  • Within the total, there were 23,190 homeowner mortgages with arrears, which represented 10% or more of the outstanding balance – 4% fewer than in the same quarter of 2017.
  • There were 1,060 repossessions of owner-occupied properties in the second quarter of 2018 – 5% lower than in the same quarter in 2017.
  • Meanwhile, 520 buy-to-let properties were repossessed – 24% lower than in the same quarter in 2017.

While this new data is capturing the headlines as an “all-time historic low for arrears and possessions”, commentators have cautioned not to be complacent. Indeed, Jackie Bennett, director of mortgages at UK Finance, has stated that arrears could creep up in the coming months due to base rates and the disappointing uptake of the Support for Mortgage Interest Loan.

Other commentators, such as the managing director of Spicerhaart Corporate Sales, Mark Pilling, have stressed there is still the “danger that anyone on a tracker or standard variable rate mortgage would be looking at affordability now that interest rates have increased”.

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