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Home repossessions at 6-year low

Home repossessions at 6-year low

Category: Mortgages

Updated: 09/08/2013
First Published: 08/08/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The number of homes repossessed in the second quarter of 2013 fell to the lowest level in almost six years.

Figures from the Council of Mortgage Lenders (CML) revealed that in the three months to June, 7,700 homes were repossessed, 4% down on the first quarter's figure and representing 0.07% of all outstanding mortgages.

Repossession figures peaked during the height of the financial crisis in 2009, when 48,900 homes were seized over the course of the year.

The CML forecasts that there will be 35,000 cases of repossession this year.

It was also revealed that by the end of June, a total of 157,700 mortgages (equivalent to 1.4% of all loans) were in arrears of 2.5% or more of the balance, down from 159,700 at the end of March and the lowest figure recorded since the end of the third quarter of 2008.

"Given the pressures on household incomes, the continuing modest decline in arrears and possessions is welcome," said the CML's head of policy, Jackie Bennett.

"Low interest rates and lower than expected unemployment are providing some relief for households, and borrowers are continuing to prioritise mortgage payments while lenders are showing forbearance where it is visibly."

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