UK mortgage arrears improving

Figures from the Council of Mortgage Lenders showed that the number of repossessions by first-charge mortgage lenders declined in Q2 this year, with 9,400 repossessions recorded in Q2 compared to 9,800 in Q1 and 11,800 in Q2 last year.

While the situation in the UK mortgage market seems to be improving, there is no guarantee that the reversal of mortgage arrears will be sustained, said Tom Entwhistle, director of LandlordZONE.co.uk.

“All the indications are that arrears can be contained at roughly the present levels, but certainly there will be no dramatic improvements and there is always the prospect of the situation worsening in the short-term,” said Mr. Entwhistle.

He explained that the improving condition was attributed to the low interest rates, as well as to a less severe impact of economic recession on the jobs market.