Number of repossessions and arrears fall dramatically

Fri, 13 Feb 2015

Number of repossessions and arrears fall dramatically
The number of homes repossessed last year fell to the lowest rate since 2006, before the economic crash, according to the Council of Mortgage Lenders (CML).

The trend continued through other aspects of mortgage payments, as less mortgage borrowers fell into arrears last year too.

This is most likely due to the low interest rates on mortgages at the moment, as well as the rise in long term fixed rate mortgages that stop people being surprised by interest rate changes.

21,000 homes in the UK were repossessed last year, 26 percent lower than the number repossessed in 2013.

However, this is worrying some experts who don't feel these good times can last. We have been promised a sharp increase in the Bank of England's base rate since halfway through last year, and despite the fact it has been postponed, it is still inevitably on the horizon.

On average, there seems to be a much larger number of people coping with payments now, but this could turn around and become a much larger number of people struggling, and even failing, to make their mortgage payments when the rates jump up.

In general, people who used the Help to Buy scheme are first time buyers and will have a generally lower income. These people could become vulnerable to the base interest rate jump.

The housing market is a great one to buy into right now, with very low interest rates and long term fixed rate offers, if buyers have enough savings to pay for a much larger deposit to get the best deals and to give security.

However, if they don't, the future may be precarious, and the numbers of arrears or repossessions could drastically rise along with the Bank of England's base rate.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete ourmortgage enquiry form below.

Mortgage, Remortgage or Buy-to-Let Mortgage Enquiry Form

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.


Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy

Get in Touch