Repossessions fall in second quarter
Greater patience on the part of mortgage lenders and better communication with home owners caused a decline in the number of repossessions taking place in the UK during the second quarter of the year.
The latest figures form the Council of Mortgage Lenders (CML) put total repossessions between April and the end of June at 11,400, the equivalent of one in every 1,000 mortgages.
This is 10% lower than the figure recorded during the first quarter of 2009, although it remains 14% up on the second quarter of last year.
Meanwhile, the number of residential property
loans in arrears by more than 2.5% of the outstanding balance stood at 205,600 in Q2. This is the equivalent of 1.85% of all mortgage loans.
The number of loans in arrears stood at 203,900 in the first quarter and 139,700 in the last quarter of 2008.
Commenting on the figures, CML head of policy Jackie Bennett said: "Clearly, low interest rates are ... helping borrowers who are committed to working to resolve their arrears, paying what they can - and when they can - towards their mortgage and maintaining good communication with their lender."
Earlier this week, the Bank of England maintained interest rates at a record low of 0.5% for the fifth consecutive month.