Cheaper mortgages cut repossessions to a record low
The number of homes being repossessed in the UK has fallen to new record lows as cheap mortgage deals have helped home owners to stay in their properties.
The repossession rate, which was already at its lowest since records started, fell to 0.02% in the second quarter of this year - equating to just one in every 5,000 mortgages, the Council of Mortgage Lenders (CML) reported.
Some 2,500 properties were repossessed in the second quarter of 2015, down from 3,000 in the previous quarter and 5,400 in the second quarter of last year.
Of these, 1,800 homes being repossessed had belonged to owner-occupiers, while a further 700 had been buy-to-let properties.
The rate of home owners falling into arrears with their mortgage was also at the lowest levels since records started in 2008.
The total number of mortgages with arrears equivalent to 2.5% or more of the mortgage balance was 106,400 - equating to 0.96% of all mortgages.
A mortgage price war has broken out in recent months, with many lenders offering their lowest ever rates
CML director general Paul Smee said the improving trend in repossessions and mortgage arrears is "very welcome".