According to UK Finance, during the second quarter of 2017, the number of mortgages in arrears of 2.5% or more of the outstanding balance fell. Since this data started becoming recorded in 1994, this was the lowest. Also the number of properties being taken into possession saw a decline as well in the second quarter; 1,900 to 1,800 which accounts for only 0.002% of all mortgages. UK Finance Paul Smee says that an overwhelming majority of owners are taking care of mortgages payments during the low interest rate period. They’re set to increase at some point but for now owners are recovering and planning ahead for possible future discrepancies.
Key Takeaways:
- Statistics show that the number of UK mortgages in arrears by 2.5%, or more, of the outstanding balance, declined in the second quarter of 2017.
- During the second quarter, the number of mortgages in arrears by 2.5%,or more, was approximately 88,200, the lowest numbers reached, according to UK Finance, since the data accrual was enacted.
- Quarter 2 numbers were also lower than quarter 1 number tallies, which amounted to 92,600 homes.
“Borrowers are being helped by low interest rates, but mortgage costs are certain to rise at some stage. It is important therefore for customers to plan ahead and consider how their finances would be affected in those circumstances”