The BoE findings also showed the proportion of loan balances with some arrears fell to its lowest level in 12 years, falling 1.7 per cent quarter-by-quarter to £14.2bn. According to the BoE this was the lowest level since the research began in 2007.
Mark Pilling, managing director at Spicerhaart Corporate Sales, said: “It is obviously great news that arrears are low and still falling, but that does not necessarily mean that people are not experiencing financial difficulties.
“Instead, what I think we can take from these figures is that lenders are continuing to do all they can to help borrowers who are struggling, to ensure that repossession is always the last option.”
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