The number of properties being repossessed by mortgage lenders has fallen again, according to new data.
The number of properties being repossessed by mortgage lenders has fallen again, according to new data.
The figures from trade body UK Finance, which represents the vast majority of mortgage lenders, revealed that just 1,100 homeowner mortgaged properties were taken into possession in the final quarter of 2017.
That’s a decline of 8% on the same period in 2016.
In addition, 600 buy-to-let mortgaged properties were repossessed over the quarter, unchanged from the same quarter in the previous year.
There was also a notable decline in mortgage arrears, UK Finance reported. It found that there were 82,000 homeowner mortgages in arrears of 2.5% or more of the outstanding balance during the quarter, 7% fewer than in the final quarter of 2016.
Within that total, 24,700 mortgages were in more significant arrears of 10% or more of the outstanding balance. This was down by 1% from the same time in 2016.
However, there had been an increase in buy-to-let borrowers falling into difficulties. The figures show that 5,100 buy-to-let mortgages are in arrears of 2.5% or more of the outstanding balance, up by 2% year-on-year.
The number of buy-to-let borrowers in significant arrears has rocketed by 20% over the time period to 1,200.
Paul Smee, head of mortgages at UK Finance, noted that annual homeowner possessions are now at a 36-year low, a reflection of the industry’s “continued commitment to appropriate and prudent lending”.
He continued: “All potential borrowers are carefully assessed against their ability to pay back their loans, and lenders work closely with their customers to ensure that any payment issues are dealt with at an early stage. Anyone experiencing difficulty with their mortgage should contact their provider immediately.”
