The Council of Mortgage Lenders (CML) repossessed fewer homes in 2016 than the previous year, with the decrease attributed to falling mortgage interest rates. With lower rates, fewer people failed to meet their mortgage payments. However, the CML warns that increased pressure on incomes and the risk of rising interest rates means consumers should be prepared. While the overall number of repossessions has fallen, a higher proportion of buy-to-let properties were repossessed. The CML has encouraged borrowers worried about missing payments to speak to their lender.
Key Takeaways:
- Fewer homes were repossessed last year than in any year since 1982 – but lenders are warning that mortgage rates will not always be so favourable.
- A total of 7,700 UK homes were repossessed last year compared with 10,200 in 2015, figures from the Council of Mortgage Lenders (CML) show.
- The were 94,100 mortgages with arrears of 2.5% or more of the outstanding balance by the end of 2016, the CML said, compared with 101,700 at the end of 2015.
“Mortgage-holders falling into arrears on their home loans also fell compared with the previous year.”