The percentage of homeowners in arrears (which are overdue debts) has fallen to its lowest figure since 2008 during the first quarter of this year, according to information released by the Council of Mortgage Lenders (CML).
In the last eight quarters, the number of homeowners who owed 10 per cent or more of their unpaid balance decreased constantly. As well as this, the number of repossessions happening decreased, with 3,100 during the first quarter of 2015. In the previous quarter this figure was 4,200, and for the first quarter of 2014, the figure was 6,400.
These figures would have been helped by the job market improving, incredibly low interest rates, and lenders focusing more on helping to keep people in their houses.
However, the aforementioned figures could have been affected by some lenders halting their actions, after the Bank of Scotland purportedly double-billed borrowers who fell behind on their mortgage repayments. As well as this, although the figures do indicate that improvements are being made, experts are warning that there could be a number of problems again in the future.
“[Although] complacency would be misplaced, the underlying picture continues to be one of improvement and a continuing reduction in mortgage arrears and repossessions,” said Paul Smee of the CML.
However, there are still many people who struggle to make mortgage repayments, and repossessions are still a very real risk for many.
Jonathan Harris, of Anderson Harris the mortgage broker, acknowledged this, and said: “Even though we have had a benign interest-rate environment for some years now, there are likely to be people whose finances are teetering on a knife edge and rate rises could easily push them over.”