Drop in repossessions and mortgage arrears

It came as a surprise that the number of mortgage borrowers behind with their repayments decreased. Despite this decrease, experts claim that the property market is as fragile as it used to be.

The Council of Mortgage Lenders (CML) has revealed that repossessions and arrears fell in the first three months of 2010. Nevertheless, the CML do not seem optimistic about the news, claiming that the figures simply demonstrate that a great number of households are ‘just coping’ and are not prepared for any further shocks caused by the current economic instability.
 
The number of repossession cases dropped by 7, 5% in the first three months of 2010.
As a proportion of all mortgages, repossession cases constituted 0.09%. The total number of loans in arrears dropped from 196,400 in the last quarter of 2009 to 186,300 in the first quarter of 2010.
It turns out that the drop was typical in the lower arrears bands than among those with larger arrears, where the reduction was insignificant. It shows that low interest rates and stable employment have been efficient in preventing new households from experiencing financial difficulties, but that a large number of households with more long-standing problems still find it hard to get back on their feet and repay arrears.
 


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