The number of repossessions fell to 21,000 in 2014 – 26% fewer than the 28,900 in 2013, and the lowest number since 2006, according to data from the Council of Mortgage Lenders.At 0.19%, the repossession rate was also lower in 2014 than at any time since 2006.
Out of the 21,000 total number of repossessions, 16,100 were on owner-occupied properties and 4,900 were on buy-to-let properties.
At 0.3%, the repossession rate on buy-to-let mortgages was higher than the 0.17% on owner-occupier loans, despite the fact that the underlying arrears rate was lower on buy-to-let lending than on home-owner lending.
The CML said: “This is unsurprising, as lenders offer extended forbearance to owner occupiers to help them get through periods of financial difficulty without losing their home.”
The CML also reported that arrears were down to their lowest level since 2006.
CML director general Paul Smee said: “The relatively low rate of repossession among owner occupiers – around one in 600 mortgages last year – should help to reassure borrowers that, if they do face payment difficulties, lenders will work with them to try to resolve their problems.
“Repossession is only ever a last resort.”
“No one should be lulled into a false sense of security that the current low interest rates we are experiencing will last forever, though. If you are interested in the latest remortgaging offers – speak to us, call your local office or request a callback on this website.”
“Rules are in place to ensure lenders assess future affordability, but these are not a substitute for careful borrowing.”
“It’s essential for borrowers themselves to have one eye on the future.”
If you are looking for a mortgage advisor in Rugby then contact Adam or Tamara, simply request a callback on this website or call your local branch of Cadman Homes.
Reference (Property Industry Eye, 13th February 2015)