CML latest figures show repossessions and mortgage arrears have continued to decline across all categories in the third quarter of 2014
Latest figures from the Council of Mortgage Lenders (CML) for the third quarter of 2014 show a continuing reduction in the number of both repossessions and mortgages in arrears, across all categories.
Commenting on the latest trends, CML director general Paul Smee said: “Low interest rates, supported by intelligent communication and forbearance, mean that mortgage arrears and repossessions continue to decline.
“But a key activity for lenders now is considering how best to support their borrowers in planning ahead for a time when debt servicing costs are higher than they are now.”
Both the owner-occupier mortgages and the buy-to-let sector saw reductions in arrears and repossessions, with figures showing that out of a total of 5,000 repossessions, only 1,100 were on buy-to-let mortgages
The latest figures published by the CML are the lowest proportion since the first quarter of 2008 (1.08%). At the end of the third quarter, the proportion of mortgages with arrears equivalent to 2.5% or more of the total mortgage value was 1.12% – down from 1.18% in the second quarter and 1.33% in the third quarter of last year.
In numerical terms, this equates to 125,100 mortgages – down from 131,400 in the second quarter and 149,400 in the third quarter of 2013.
Paul Smee concluded: “Encouragingly, recent research also suggests that many households are preparing themselves for the prospect of higher interest rates, so we expect any uptick in payment difficulties to be relatively muted if and when rates do begin rising.