The number of mortgages in serious arrears has fallen again and is at a seven-year low, says the Council of Mortgage Lenders.
There were 113,900 loans in arrears of at least 2.5 per cent of the outstanding balance, down 17.6 per cent on the 138,200 a year earlier. This equates to 1.03 per cent of all outstanding loans.
Of these, 24,400 were in arrears of more than 10 per cent of the outstanding balance, equating to 0.22 per cent of all mortgages.
The proportion of mortgages resulting in repossession in the first quarter was 0.03 per cent, down from 0.06 per cent in the first quarter of last year. The number of repossessions was 3,100, down from 6,400 in the first quarter.
CML director general Paul Smee says: “Although complacency would be misplaced, the underlying picture continues to be one of improvement and a continuing reduction in mortgage arrears and repossessions.
”The message remains the same: don’t delay in contacting your lender if you are experiencing temporary payment problems, as lenders want to help you resolve them, and will only take possession of property as a last resort.”