I was pleased to read that there has been a continued drop in mortgage arrears and repossessions by lenders.
UK Finance has released data for the second quarter of the year and it showed 76,740 homeowner mortgages in arrears of 2.5% of the outstanding balance. This represents an 8% drop on the figures for the same period last year.
Out of that total, 23,190 homeowner mortgages were in arrears of 10% of the total outstanding which is an annual decrease of 4%.
A total of 1,060 homeowner mortgaged properties were repossessed in the quarter which represents a 5% drop.
The picture for Buy to Let mortgages was not quite as good. Although the 4,400 in arrears of 2.5% of the outstanding balance showed a fall of 6% on the same period last year, 1,080 mortgages were in arrears of 10% or more, an increase of 2%.
Buy to Let repossessions were dramatically down, however. 520 repossessions took place which is 24% down for the same quarter last year.
Whilst the recent increase in interest rate has caused some borrowers and lenders concern, the blow should be softened by the continuing availability of many competitively priced fixed rate mortgages.
