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Homeowner mortgage arrears and possessions fall in Q3

The number of homeowner mortgages in arrears of 2.5 per cent or more of the outstanding balance decreased again in the third quarter of this year.

Figures from UK Finance found that there were 77,600 homeowner mortgages in arrears to this level, 5 per cent fewer than in the same quarter of 2017.

Within the total, there were 24,090 homeowner mortgages with more significant arrears (representing 10 per cent or more of the outstanding balance), an unchanged figure from in the same quarter of the previous year.

There were 4,660 buy-to-let mortgages in arrears of 2.5 per cent or more of the outstanding balance in the third quarter of 2018, 1 per cent fewer than in the same quarter of last year.

However, there were 1,150 buy-to-let mortgages with more significant arrears (representing 10 per cent or more of the outstanding balance), 3 per cent greater than in the same quarter of the previous year.

UK Finance director of mortgages Jackie Bennett says: “It is encouraging that homeowner arrears and repossessions remain at historically low levels, which shows the vast majority of borrowers continue to repay their mortgages in full and on time each month.

“We would always encourage anyone with concerns about making their mortgage repayments to contact their lender to discuss the advice and support available.”

In terms of repossessions, 1,080 homeowner mortgaged properties were taken into possession in the third quarter of 2018, 19 per cent fewer than in the same quarter of the previous year.

It was also positive news for buy-to-let repossessions, with 500 BTL mortgaged properties taken into possession in the third quarter of 2018, 17 per cent fewer than in the same quarter of the previous year.                                                                

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