The number of mortgages in arrears has fallen to its lowest quarterly rate on record, figures reveal.
During the first quarter of 2017 there were 92,600 mortgages in arrears, representing 0.84 per cent of all mortgages, according to the Council of Mortgage Lenders (CML).
The total number represents a slight drop on the 93,700 recorded in the fourth quarter of 2016.
But while cases fell across almost all bands, the stock of cases with arrears of over 10 per cent of the mortgage balance rose from 25,900 to 26,500 quarter on quarter.
The number of properties taken into possession was also 10 per cent down on a year ago at 1,900 - the eighth successive quarter to witness a repossession rate of 0.02 per cent.
While the buy-to-let arrears rate was lower than the owner-occupier arrears rate, the repossession rate was higher, reflecting lenders’ tendency to help homeowners resolve their problems and keep their homes whenever possible.
Paul Smee, CML director general, commented: “This positive picture of mortgage performance is good news, and reflects a continuing benign interest rate and employment environment.
“However, it is important that borrowers continue to think about the future, and how they would cope with less positive conditions, even if that scenario seems distant.
“Lenders will always work with borrowers to try to help them through the inevitable periods of difficulty that life may throw at them, such as periods of unemployment, illness or relationship breakdown.
“So anyone facing difficulty should not hesitate to make contact with their lender, who will wish to help them resolve their difficulties and remain in their home wherever possible.”
David Hollingworth, associate director, communications at London and Country, said: “It is great that the total number of cases has fallen, and not surprising with low rates and the employment situation staying fairly solid.
“But you have to look at how those in difficulty are being helped through those problems and get them through without repossession as soon as possible.
“Retaining the current level of affordability should help manage those figures as rates start to climb.”
simon.allin@ft.com
