Mortgage repossessions fall in Q2

18th August 2015

The repossession rate – already at its lowest since records began – continued to fall during the second quarter of 2015, according to the Council of Mortgage Lenders (CML). The rate was 0.02%; equivalent to just one in 5,000 mortgages.

CML data shows that 2,500 properties were taken into possession during the three-month period, down from 3,000 the previous quarter and 5,400 during the second quarter of 2014. Of these, 1,800 were in the owner-occupier market and 700 were in the buy-to-let market.

In terms of arrears, the number of mortgages with arrears equivalent to 2.5% or more of the mortgage balance totalled 106,400.This equated to 0.96% of all mortgages, which again was the lowest rate since quarterly records began in 2008.

Of all loans with arrears of more than 2.5% of balance, 100,700 were owner-occupier and 5,700 buy-to-let.

In both the owner-occupier and buy-to-let markets, the number and proportion of mortgages in arrears fell or remained static in all arrears bands.

Commenting on the data, CML director general Paul Smee said: “Across all measures, mortgage arrears and repossessions are continuing to improve. We continue to see some amplification of the downward trend in repossessions, which may bring into question our repossessions forecast for 2015 as a whole.

“This trend is very welcome. Low interest rates are acting as a significant support for homeowners in general, and are likely to be helping to stave off low-level arrears for stretched households in particular. 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.”

*2 year fixed with TSB 1.09% then 3.59% - APRC is 3.3% Max LTV is 60%. Quoted on 27th May 2020.