0 £0.00
This item was added to your basket

Mortgages in arrears at all-time low

The number of mortgages in arrears is the lowest it’s ever been since records began 20 years ago, a study has found.


Amber-Ainsley   Pritchard

Share on LinkedInShare on Twitter
Amber-Ainsley   Pritchard
Share on LinkedInShare on Twitter

The Council of Mortgage Lenders (CML) said there were 92,500 mortgages in arrears at the end of June compared to 106,800 for the same month last year.

 

The number of properties taken into possession also fell in the second quarter to 1,900, down from 2,100 in the first three months of the year.

 

The CML said: “If the present trend continues, the number of mortgaged property repossessions this year is on course to be the lowest since 1982, when there were 6.5 million mortgages compared to 11.1 million today (August 11).”

 

The Association of Mortgage Intermediaries (AMI) said in a report that the possession figures raised a question – is there a problem brewing in banks?

 

The trade body for brokers said this is a potentially disproportionately low proportion of possessions given the number of borrowers in fairly serious arrears.

 

It added: “Nobody wants to lose the roof over their head but if they are in serious arrears and have little to no hope of getting back in control of their payments, AMI would ask whether it would be fairer for the customer to agree a faster possession process. This would mean minimising the debt outstanding by reducing the penalties in arrears.”

 

The trade body added that the industry’s relationship with the Financial Conduct Authority is under strain.

 

It said: “The regulator fails to communicate with firms resulting in a sort of ‘blind examination’.

 

“Regulation has got it wrong in that it is nearly impossible for lenders, unless they use fully qualified advisers, to have a reasonable conversation with borrowers in difficulty without it straying out of generic guidance into fully regulated debt counselling.”

Share on LinkedInShare on Twitter
Add New Comment
LoginRegister

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

RBS, NatWest and Ulster Bank hit by online banking glitches

RBS, NatWest and Ulster Bank hit by online banking glitches

Metro Bank CRO Aileen Gillan on championing women in credit

Metro Bank CRO Aileen Gillan on championing women in credit

Consumers £800 worse-off post-financial crisis

Consumers £800 worse-off post-financial crisis

Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group