Belfast Telegraph

Borrowers are urged to plan for rate hikes

By Damian Clarkson

A total of 2,500 homes in the UK were repossessed in the third quarter, according to the Council of Mortgage Lenders (CML).

This was unchanged from the previous quarter, although the number of homes in serious arrears did increase by 400 to 23,700 during the period July to September.

CML director-general Paul Smee said the figures were positive overall, but warned homeowners should not be lulled into a false sense of security by the low cost of borrowing.

"There is possibly a risk that people will postpone thinking about the prospect of higher payments as the timing of rate rises continues to stretch beyond previous expectations," he said.

"We would urge all borrowers to plan ahead, as prevention is better than cure."

Looking at the longer term, both repossessions and arrears were notably lower than a year ago.

But as the methodology used to analyse some of the figures has changed during that time, the CML said caution was needed when making comparisons.

Belfast Telegraph