UK Finance has reported that there were 76,740 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in the second quarter of 2018, 8% fewer than in the same quarter of the previous year.
Within the total, there were 23,190 homeowner mortgages with arrears representing 10% or more of the outstanding balance. This was 4% fewer than in the same quarter of the previous year.
Meanwhile, there were 4,440 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance in the second quarter of 2018, 6% fewer than in the same quarter of the previous year.
Within the total, there were 1,080 buy-to-let mortgages with arrears representing 10% or more of the outstanding balance. This was 2% greater than in the same quarter of the previous year.
UK Finance said 1,060 homeowner mortgaged properties were taken into possession in the second quarter of 2018, 5% fewer than in the same quarter of the previous year.
In addition, 520 buy-to-let mortgaged properties were taken into possession in the second quarter of 2018, 24% fewer than in the same quarter of the previous year.
Jackie Bennett, director of mortgages at UK Finance, said: “Arrears and possessions are at an all-time historic low since we first started collecting this data over 24 years ago.
“While this is positive, last week’s base rate rise coupled with the disappointing uptake of the Support for Mortgage Interest (SMI) loan could see arrears creeping up in the coming months.
“With well over 90% of new loans taken out at fixed rates, most recent borrowers will see no immediate impact from the Bank rate increase. However, anyone with concerns about managing their mortgage should contact their lender to discuss the advice and support available. Repossession is always a last resort.”