According to new data from the Council of Mortgage Lenders in the second quarter of 2012 there was a decline in the number of mortgage repossessions in the UK.
The number of repossessions that took place totalled to 8500 which was the lowest since the final quarter of 2010. This amount was 1,000 fewer than in the first three months of 2012. However the drop in the second quarter was in line with the seasonal pattern which has happened over the last three years.
The data also found that the number of homeowners who have fallen behind with their mortgage payments was near enough the same compared to the same quarter for 2011. Only 2.5% of mortgages were in arrears at the end of the first quarter. Levels of arrears in lower and middle bands from the data were lower than in the previous three months, but for higher level bands there was a small increase for mortgages with more than 10% arrears on the balance.
Even though repossession figures have declined for the second quarter of 2012 it is expected that the rate of repossessions will increase for the rest of the year, as UK homeowners are faced with budgets due to high unemployment and low wage.
Commenting on the data, CML's Director General Paul Smee commented: “The figures show that lenders, borrowers and debt advisers are working together to get through the current period of economic difficulty and keep mortgage possessions in check.
“Generally, when borrowers prioritise their mortgage commitments, lenders can provide help appropriate to their individual circumstances. But success in managing temporary payment problems depends on everyone working together and it is essential for anyone worried about their mortgage to talk to their lender as soon as possible.”
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By Amanda Bainbridge