Mortgage arrears low and little appetite for repossessions

Mortgage arrears low and little appetite for repossessions

Mortgage rates have hit the headlines for the last 5 months but rates of arrears remain low by long-term standards.

  • Mortgage rates have hit the headlines for the last 5 months but rates of arrears remain low by long-term standards. Just 0.88% of all mortgages are in arrears of 1.5% or more, according to the latest data from the Financial Conduct Authority (FCA).
  • At the height of the Global Financial Crisis there were more than 40,000 new arrears cases each quarter, the average since the implementation of the Mortgage Market Review in April 2014 just over 15,000. At the end of Q3 2022 the figure was just over 10,000.
  • Likewise, repossession numbers are far lower. Repossessions breached 8,500 in the first quarter of 2009, have averaged just below 1,800 since the MMR with the figure in 2022 was just over 1,000.
  • Swap rates, which rose considerably in the wake of the Growth Plan, continue to pare back, indicating longer-term stability in the market. Mortgage rates are anticipated to stabilise around 4%.Source: Dataloft, Financial Conduct Authority, Mortgage Market Review (MMR), Average Q2 2014 to Q4 2021, 2022 to end Q3, number per quarter

Get in touch with us

Stop Black Mold From Ruining Your Home: Essential Tips for Prevention

Black mould in our homes is not just an eyesore, it's a serious health hazard. As the seasons change and temperatures drop, it's crucial to take steps to prevent its formation in your home or rental properties. Let's delve into how you can tackle this issue.

CLICK HERE >

Essential Steps Before Selling- Should You Extend Your Lease?

Do you own a leasehold property? Do you know how much is left on your lease? Read this article to learn more about why you should know how long is left, particularly before you try to sell.

CLICK HERE >

Selling Property with Tenants: Here's What You Need to Know

Do you have a property rented out and are considering selling it? Are you wondering whether this is even possible or how to go about relieving yourself of the duties of being a landlord? Read this article to find out.

CLICK HERE >

Property Valuations Explained: Find the Most Accurate Method for Your Needs

If you are at the very early stage of planning to move, just thinking about it, is it too early to arrange a valuation of your home? Read this article to learn about the various valuation options available to you and how accurate they are.

CLICK HERE >