Number Of Repossessions Fall
Apparently, according to the Council of Mortgage Lenders (CML), the number of repossessions that took place on residential properties has fallen in the first three months of 2016 when compared to the same period last year. We are sure that you will agree that this is certainly good news.
In the first quarter of 2016 there were 2,100 repossessions of which 1,500 related to properties that were for homeowner occupation with the remaining 600 being for properties that were occupied by tenants and subject to buy-to-let mortgages. In the same period in 2015 there were 3,000 of such repossessions.
There are no doubt a number of reasons why the number of repossessions has fallen when comparing the above two periods. For instance, interest rates continue to remain low resulting in continued lower mortgage repayments and this combined with the employment situation in the UK looking favourable has perhaps played a part in the above improvement being seen.
No mortgage lender wants to have to repossess a property and will do all that it can to help a borrower get through a difficult period in their lives should they fall into arrears with their residential mortgage. It is important that if someone does fall behind with their repayments that they get in touch with their lender to update them on their situation. Better still, contact should ideally be made by the borrower with the lender prior to the mortgage falling into arrears.
A lender will no doubt do all that it can to help support a borrower who may have got into financial difficulty perhaps through being made redundant or suffering a long term illness. It could also be argued that it is in the best interest of lenders that repossessions are kept as low as possible as they would probably prefer not to be a part to the publicity that surrounds property repossessions.