Repossessions fall to lowest on record, say lenders

Posted: 18/5/2016

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The number of repossessions in the first quarter of 2016 was 2,100 – the lowest on record.

Of that figure, 1,500 were home-owner repossessions and 600 were buy-to-let, reports the Council of Mortgage Lenders.

If this rate continued through 2016, it would put the annual number of repossessions at 8,400, lower than any year since 1982 (but that year there were only 6.9m mortgages, against 11.1m mortgages today).

Mortgage arrears also continued to fall.

For the first time in more than a decade, the number of mortgages in arrears of 2.5% or more fell below the 100,000 mark, with 96,200 loans in arrears at the end of March, down from 101,700 at the end of December, and 111,200 at the end of the first quarter of 2015.

Even the number of mortgages in the most serious arrears band of 10% or more, which has remained fairly static while the lower arrears bands have declined, fell a little this quarter.

It has been a notable trend in recent years that the decline in mortgage arrears and repossessions means that experience is much more positive than in the rented sector, where separate data from the Ministry of Justice, based on court activity, shows that eviction rates are much higher (especially in the social rented sector).

If you are in negative equity and concerned about either repossession or not being able to repay your mortgage, we may be able to help. In conjunction with an acountancy firm we have and are helping home owners and landlords in such situations. To discuss this in confidence give us a call or send us an email. Key One Property 028 9045 6162 / keyone@btinternet.com.

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