Residential repossessions down but landlord arrears rise
The number of borrowers in arrears and the number of homes repossessed by lenders both fell in the fourth quarter of 2017, new figures from UK Finance show.
However, the number of landlords who fell behind with mortgage payments ticked up over the same timeframe.
There were 82,800 homeowner mortgages in arrears of 2.5 per cent or more of their outstanding balance in the fourth quarter of 2017 – a drop of 7 per cent on the same quarter of 2016.
Lenders repossessed 1,100 properties in the final quarter of 2017, which was a fall of 8 per cent on the same period the previous year.
In the buy-to-let sector, 5,100 mortgages were in arrears of 2.5 per cent or more – an increase of 2 per cent on the same quarter of the previous year.
The number of buy-to-let properties repossessed by lenders in the fourth quarter was 600, unchanged from the previous year.
UK Finance head of mortgages Paul Smee says: “Annual homeowner possessions currently stand at a 36 year low, with overall arrears and possessions continuing to decline.
“This reflects the mortgage industry’s continued commitment to appropriate and prudent lending.”
Source: Mortgage Strategy