According to the latest survey results conducted by the Council of Mortgage Lenders (CML), the number of mortgage arrears as well as repossession mortgage cases continues to fall, a trend that started since the third quarter of 2013. From the figures gathered by the CML, 1.33 percent of the entire lot of mortgages, which is a total of 149, 400 mortgages, had arrears equivalent to 2.5 percent of their respective mortgage balance at the end of the third quarter last year. This figure is significantly lower than in 2012, which was 154,900 mortgages or 1.38 percent during the second quarter and 159,100 or 1.4 percent during the third quarter. These figures are both representative of home owner and buy and let repossession mortgage and arrears.
The CML’s initial forecast at the start of 2013 was 35,000 total repossessions. But the total number of repossessions looks to be less than 30,000. This year’s forecast by CML is an estimate of 37,000 repossessions. However, this figure is still expected to go down when the CML housing market forecast for 2015 will be published by December 2014.
The continued reduction in mortgage arrears and repossessions is welcome news to anyone. Even those currently faced with the prospect of repossession can be assured that losing their home is a last resort and that their issues could be resolved by taking things out with their lender immediately. However, this piece of welcome news is not a cause to become entirely complacent. According to CML Director Paul Smee, it makes sense for home owners to prepare for unforeseen circumstances like the possibility of higher interest rates and increased mortgage payments in the future. If anything, this situation should encourage people to think ahead in terms of managing their finances wisely so they can be better prepared to face contingencies and abrupt changes. The head of the Mortgage Advice Bureau (MAB), Brian Murphy, says that both borrowers and lenders can take heart in the continued decline of repossessions and arrears. The current situation is conducive to responsible and sustainable lending for the rest of 2014.
A Quick Property Move is a quick property sale company and one of the leading ones of its kind based in the UK. We welcome all clients and strive to understand their needs to provide the best solutions. With our expertise in the quick sale property scheme, we have helped many customers escape the burden of losing their homes and the stress of getting a repossession notice. We continue to strive in finding better ways to close fast house sales and keep our customers satisfied.
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