THE number of UK homes being repossessed due to missed mortgage repayments has hit a new low.
It fell from 1,900 in the first quarter of this year to 1,800 in the second, studies show.
Those in arrears of 2.5 per cent or more of the outstanding balance dropped to 88,200 over the same period, according to lenders trade body UK Finance.
Low interest rates have helped keep mortgage repayments at affordable levels, even for households with stretched incomes.
A drop in the number of homeowners seriously behind on their monthly repayments was also recorded.
There were 25,200 mortgages in arrears of 10 per cent or more of the outstanding balance, down five per cent on the first three months of the year and finishing a run of five successive quarters of increases.
Paul Smee, head of mortgages at UK Finance, said: “These figures show that the overwhelming majority of borrowers are managing their mortgage payments successfully, and many of those who have experienced some difficulty in the past are able to recover their financial position.
“The recent improvement in the number of mortgages with high levels of arrears is particularly welcome.
“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.
“As ever, lenders will continue to help borrowers resolve any financial difficulty if possible, so customers should not hesitate to contact their lender if they anticipate any payment problems.”
Source: Stroud Journal