Quarter 2 sees repossession levels fall

The second quarter of this year has seen repossession levels fall in the UK according to a recent report. Repossessions have been rocketing in the UK as a result of the global credit crunch and high interest rates.

However, many industry officials have said that the financial sector has now eased off and interest rates are at an all time low of just 0.5 percent.

It has now been reported that the number of repossessions in the UK has fallen in the second quarter of the year, with the government brining in various measures to try and help struggling homeowners.

One of the things that has really helped to make homes more affordable for struggling mortgage holders is the extent by which the base interest rate has fallen, and many – although not all – homeowners have seen their repayments plummet as a result of this.

There were nearly fifteen thousand homes that were repossessed in the first quarter of this year according to industry figures, but in the second quarter of the year this figure fell to just over thirteen and a half thousand homes being repossessed, with the drop being attributed to a number of different factors.

However, despite this good news industry experts have pointed out that the number of repossessions for the second quarter of this year are still around 23 percent higher than the same quarter last year.

One industry official said the drop in repossessions was partly due to the fact that people were becoming more confident when it came to seeking help and assistance from the lenders.

He said: “Borrowers that have been in arrears believe that their lender has been helpful and has treated them fairly. Those that face payment problems should therefore not be daunted by their arrears, but should take control of the situation by seeking help as soon as they can.”

Tags: industry, mortgage defaults, high interest rates, repossession, repossession levels, repossessions, Mortgages, lenders