Home Repossession Rates Down Across the UK
August 25, 2015
The frequency with which mortgage lenders are taking steps to repossess properties owned by indebted borrowers around the UK fell sharply during the second quarter of this year.
According to the latest data from the Council of Mortgage Lenders (CML), there were roughly 2,500 properties repossessed during the three months from April to June 2015.
These numbers compare favourably with the figure of 3,000 repossessions that the CML reported for the first quarter of the year and 5,400 as was recorded for the second quarter last year.
The CML noted that a majority (1,800) of the 2,500 properties repossessed in the second quarter were owner-occupied, while the remaining 700 or so were bought to let out to tenants.
“Low interest rates are acting as a significant support for home-owners in general, and are likely to be helping to stave off low level arrears for stretched households in particular,” commented Paul Smee, the CML’s director general.
“As ever, we urge borrowers to think ahead to when interest rates rise, and to contact their lender without delay if they are in difficulty – prompt action helps to prevent problems worsening.”
Meanwhile, the UK’s Finance & Leasing Association (FLA) has released figures that show a sharp fall in the number of second charge mortgage repossessions around the country during the second quarter of this year.
According to the FLA, there were 49.6 per cent fewer instances of second charge mortgage repossession between April and June of this year than was the case during the same three-month period in 2014.
“The further decrease in repossessions reflects second charge mortgage lenders’ commitment to helping customers in financial difficulty,” said Fiona Hyde, head of consumer finance at the FLA.
A separate data release from the CML in recent days showed that gross mortgage lending was worth some £22 billion across the UK in July, which represents the highest overall value for mortgage lending nationwide in seven years.
“We expect lending activity in the rest of the year to be underpinned by improving economic fundamentals, but kept in check as any upward pressure on house prices further stretches affordability for some buyers,” CML economist Mohammed Jamei said in response to his organisation’s latest findings.
If you live in Scotland and you’re worried about the threat of home repossession or you’re having to deal with bailiff letters, contact Scotland Debt Solutions today and one of our advisers can help you.