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Repo Numbers Tumble To Nine Year Low

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Repossessions tumble by over a quarter to lowest level for nine years

The number of repossessions fell to 21,000 in 2014 – 26% fewer than the 28,900 in 2013, and the lowest number since 2006, according to data from the Council of Mortgage Lenders.

At 0.19%, the repossession rate was also lower in 2014 than at any time since 2006.

Out of the 21,000 total number of repossessions, 16,100 were on owner-occupied properties and 4,900 were on buy-to-let properties.

At 0.3%, the repossession rate on buy-to-let mortgages was higher than the 0.17% on owner-occupier loans, despite the fact that the underlying arrears rate was lower on buy-to-let lending than on home-owner lending.

The CML said: “This is unsurprising, as lenders offer extended forbearance to owner occupiers to help them get through periods of financial difficulty without losing their home.”

The CML also reported that arrears were down to their lowest level since 2006.

CML director general Paul Smee said: “The relatively low rate of repossession among owner occupiers – around one in 600 mortgages last year – should help to reassure borrowers that, if they do face payment difficulties, lenders will work with them to try to resolve their problems.

“Repossession is only ever a last resort.

“No one should be lulled into a false sense of security that the current low interest rates we are experiencing will last forever, though.

“Rules are in place to ensure lenders assess future affordability, but these are not a substitute for careful borrowing.

“It’s essential for borrowers themselves to have one eye on the future.”

http://www.propertyindustryeye.com/repossessions-tumble-quarter-lowest-level-nine-years/

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At those levels there`s almost 20 years worth here http://www.ukar.co.uk/

JP Morgan had all the good ones so can only assume the rest are delinquent in varying degrees

Welcome to UKAR

UK Asset Resolution Limited (UKAR) is the holding company established to bring together the government-owned businesses of Bradford & Bingley plc (B&B) and NRAM plc.

Together, the combined organisation supports around 435,000 customers with £58 billion of loans, with over 2,000 colleagues based at its main sites in West Yorkshire and the North East.

UK Financial Investments Limited (UKFI) manages HM Treasury’s 100% shareholding in UKAR Limited.

On 8 October 2013 UKAR Corporate Services Limited (UKARcs), a subsidiary business of UKAR, became responsible for the administration of the Government's Help to Buy Mortgage Guarantee Scheme on behalf of HM Treasu

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“No one should be lulled into a false sense of security that the current low interest rates we are experiencing will last forever, though.

“Rules are in place to ensure lenders assess future affordability, but these are not a substitute for careful borrowing.

“It’s essential for borrowers themselves to have one eye on the future.”

Wise advice, of course, but I think it was FreeTrader posted some charts a few days ago showing 5 and 10 year fixed mortgages outpacing SVR mortgages.

Now, that could be borrowers having one eye on the future, hedging against interest rates moving in the only direction they can move (to any extent), but I worry that it's something to do with the fact that they are exempt from MMR rules, and if so, I can see these numbers rising, significantly, in a year or two.

I say worry, but if people want to ignore all advice and borrow more than they can afford and then get stung, that's up to them and the more distressed sellers there are, the better for me - they are making it harder for me to buy in the interim - but of course it's not good for people to loose their homes (leave me alone, Venger).

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At 0.19%, the repossession rate was also lower in 2014 than at any time since 2006

"Lower" perhaps, but in absolute terms still not all that low.

Go back to the 60's, 70's, and early 80's, when mortgage screening was stricter, and it was quite a bit lower than now. The repossession rate in 1973 for example was only 0.03%, less than one sixth of today's rate.

The other way of looking at it is to ask the following question. If your chances of being repossessed are 0.19% in any one year, then what are your chances of being repossessed over the entire life of a typical 25 year mortgage? That's a more sensible way of looking at it, because you're exposed to repossession throughout the mortgage term and it's equally calamitous no matter when it occurs. Works out that at today's repossession rate you've got something like a one in twenty chance of losing your home at some point.

Add in the reducing security of employment that we all now face and that should give pause to any happy, shiny first time buyer...it should, but of course it won't.

Edited by silver surfer

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There have been very few mortgages took on in the last (almost) 10 years.

To default on a mortgage you first need to have a mortgage.

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There have been very few mortgages took on in the last (almost) 10 years.

To default on a mortgage you first need to have a mortgage.

That sent me off looking for 2013's equivalent of the 0.19% figure, which was 0.26%. So actually a 27% drop taking the number of mortgages into account.

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