Q2 Sees Drop In Mortgages In Arrears
Many homeowners have a residential mortgage here in the UK and, unfortunately, some borrowers do get into financial difficulty and get behind with their mortgage repayments. So, how many people are in arrears?
Well, according to data published by UK Finance, the number of homeowners falling into arrears equating to 2.5% or more of the mortgage’s outstanding balance was 75,890. In Q2 of 2019. It is pleasing to be able to report that that is 3% less than in the second quarter of 2018. Furthermore, the number of mortgages that were seriously in arrears in the second quarter of 2019 by 10% or more of the outstanding mortgage was 23,370. This was 2% less than in the second quarter of 2018.
The number of repossessions of residential properties that took place in Q2 of 2019 was 1,270. It is disappointing that that is 15% more than in Q2 of 2018.
The number of buy to let mortgages in arrears of 2.5% or more of the mortgage outstanding balance totalled 4,660 in Q2 of 2019. This is 5% more than in Q2 of 2018. In the second quarter of 2019, there were 590 buy to let mortgages repossessed with this being 2% more than in Q2 of 2018.
Presumably, lenders will only seek to repossess a property as a last resort as no lender takes pleasure in having to put someone out of their home. The same can be said for lenders providing commercial mortgages as taking such action could result in the business ceasing to trade affecting not only the business owners but also employees.
There are no doubt many occasions when a residential property is repossessed due to no fault of the borrower. For instance, someone could lose their job due to a business that employs them ceasing to trade here in the UK. We will continue to keep our readers up to date with interesting statistics relating to both commercial and residential mortgages.