The latest mortgage lenders and administrators’ statistics which reveal arrears have fallen again this quarter, and overall, arrears are still the lowest they have been since the series began in 2007.
Mark Pilling, Spicerhaart Corporate Sales managing director, says: “The latest mortgage lenders and administrators’ statistics reveal that the proportion of total loans in arrears has continued to fall, and is down 0.5% in the quarter to £14.4bn while the proportion of total loan balances in arrears has continued to remain at 1.0% which is the lowest since the series began in 2007.
And while it is good news that arrears remain historically low, there is a danger that people could start to struggle, post-Brexit, with predictions from Kensington this week that a no-deal Brexit could see arrears rise by a third.
Arrears and possessions – currently at a 40-year low – remain low, not necessarily because people are no longer experiencing financial difficulties but because lenders are now doing everything, they can to help borrowers who are struggling or may struggle in the future to avoid going down the repossession route.
Therefore, to continue to keep possessions down throughout this period of uncertainty, it is important that lenders look at all the cases on their books and find ways to help any borrowers who are either already having difficulties managing their mortgage or have concerns that affordability could become an issue down the line.
We work closely with lenders to manage their arrears and repossessions, to find solutions that best suit them and their customers. We would encourage lenders to look at all the cases on their books and if they have concerns about borrowers, either now, or in a post-Brexit world, to speak to them sooner rather than later in order to look at possible options.”