Posted on Friday, November 18, 2011
The number of mortgage borrowers in arrears falls steadily, according to the Council of Mortgage Lenders (CML).
The latest report published by the Council of Mortgage Lenders suggests that the number of mortgage arrears and property repossessions remained low in the third quarter of 2011.
As such, only 0.08% of all homes in mortgages were repossessed. This constitutes 9,200 homes, slightly up from 9,100 homes in the second quarter of 2011.
According to CML experts, the level of property repossessions has remained stable in the past 6 months. Overall, there were 27,500 homes repossessed in the first 3 quarters of 2011.
The low level of property repossessions in the UK is due to the measures taken by British banks and government. Lately, they have worked hard to avoid sharp increases in mortgage arrears and repossessions.
Paul Smee, director general of the CML, said: “The fall in the number of mortgages in arrears, and the stable picture on repossessions, are testament not only to the beneficial effects of low interest rates, but also to effective arrears management, and good communication between lenders, borrowers and debt counselling organisations.”
Richard Lowth, Managing Director of Richard Lowth & Co said: “This is clearly good news and can be seen as a boost in confidence for the property market despite the very challenging current economic environment.”
