Home repossessions fall to record low level
The number of homes being repossessed has fallen to new record lows as cheap mortgage deals have helped home owners to stay in their properties.
The repossession rate, which was already at its lowest since records started, fell to 0.02% in the second quarter of this year - equating to just one in every 5,000 mortgages, the Council of Mortgage Lenders (CML) reported.
Some 2,500 properties were repossessed in the second quarter of 2015, down from 3,000 in the previous quarter and 5,400 in the second quarter of last year.
Of these, 1,800 homes being repossessed had belonged to owner-occupiers, while a further 700 had been buy-to-let properties.
The rate of home owners falling into arrears with their mortgage was also at the lowest levels since records started in 2008, the CML said.
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The total number of mortgages with arrears equivalent to 2.5% or more of the mortgage balance was 106,400 - equating to 0.96% of all mortgages.
Of the loans in arrears, 100,700 were owner-occupier loans, while 5,700 were buy-to-let loans.
A mortgage price war has broken out in recent months, with many lenders offering their lowest ever rates, although some lenders have started to tweak the rates they are offering upwards in recent weeks.
Bank of England governor Mark Carney recently suggested that the base rate could start to move off its 0.5% low around the turn on of the year.
CML director general Paul Smee said the improving trend in repossessions and mortgage arrears is "very welcome".
He said: "Low interest rates are acting as a significant support for home owners in general, and are likely to be helping to stave off low level arrears for stretched households in particular.
"As ever, we urge borrowers to think ahead to when interest rates rise, and to contact their lender without delay if they are in difficulty - prompt action helps to prevent problems worsening."
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