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Mortgage arrears rate in UK remains at 20-year low in Q3.

M2 EQUITYBITES-November 10, 2016-Mortgage arrears rate in UK remains at 20-year low in Q3

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The rate of mortgage arrears among homeowners in the UK remained at a 20-year low in the third quarter, it was reported on Thursday.

According to the Council of Mortgage Lenders (CML), which represents banks, building societies and other lenders, the number of mortgages in arrears rose slightly to 93,300, from 92,500 in the previous quarter. This was in line with a rise in the estimated total number of outstanding mortgages.

The overall arrears rate in the three-month period was the same as in the second quarter, with 0.84% of all mortgages recording arrears equivalent to more than 2.5% of the mortgage balance.

Similarly, the overall repossession rate remained the same as in the second quarter, at 0.02%, representing 1,900 mortgages (of which 1,300 were owner-occupier and 600 buy-to-let).

Paul Smee, the CML's director general, said that the data painted a "reassuring picture" of a market in which financial difficulties and repossessions were "relatively rare".

"However, there is no denying that economic uncertainty for households is increasing," Smee added. "We would strongly urge all mortgage holders to consider whether there are ways that they can plan ahead for possible changes in the future -- whether this relates to employment prospects, mortgage payments, or other spending."

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