You are here: Home - Mortgages - Remortgage - News -

Mortgage arrears and repossessions fall to all-time low

0
Written by: Christina Hoghton
10/08/2018
The vast majority of borrowers are meeting their monthly repayments, but the recent rate rise could mean more start to struggle.

Arrears and possessions are at an all-time historic low since the data first started being collected over 24 years ago, according to UK Finance.

The trade body’s latest Mortgage Arrears and Possessions Update for the second quarter of 2018 revealed there were 76,740 homeowner mortgages in minor arrears of 2.5% or more of the outstanding balance in the second quarter of 2018, 8% fewer than in the same quarter of the previous year.

Within the total, there were 23,190 homeowner mortgages with serious arrears representing 10% or more of the outstanding balance. This was 4% fewer than last year.

Fewer repossessions

Repossessions were also down. In total 1,060 homeowner mortgaged properties were taken into possession in the second quarter of 2018, 5% fewer than in the same quarter of the previous year, and 520 buy-to-let mortgaged properties were taken into possession, 24% fewer than last year.

Jackie Bennett, director of mortgages at UK Finance, said: “While this is positive, last week’s base rate rise could see arrears creeping up in the coming months.

“With well over 90% of new loans taken out at fixed rates, most recent borrowers will see no immediate impact from the Bank rate increase. However, anyone with concerns about managing their mortgage should contact their lender to discuss the advice and support available. Repossession is always a last resort.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • According to @YourMoneyUK the #Govt is considering a Care ISA’ which would be exempt from #inheritancetax. Could th… https://t.co/hPVZZfdyDr
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
Read previous post:
smart meter
Call for smart meter roll-out deadline to be extended

The deadline for smart meters to be rolled out should be pushed back by three years, a charity urges.

Close