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

Mortgage arrears and repossessions fall to all-time low

Written by: Christina Hoghton
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.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week