low interest rates
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Housing Market
Repossessions fall to historic low
Repossessions in the UK dropped to the lowest level since records began in 2008 during the second quarter of 2015, the latest data shows. The figures from the Council of Mortgage Lenders (CML) reveals that the repossession rate in the last quarter was just 0.02 per cent, which is equivalent to just one in 5,000 mortgages and the data from the CML revealed that arrears also continued to drop. Record low interest rates were a major factor in helping homeowners stay on top of their mortgage payments in the second quarter of the year, along with falling unemployment and a strengthening domestic economy. In total, there were 2,500 properties taken into possession in the second quarter, down from 3,000 the previous quarter and 5,400 in the second quarter of 2014. Of these, 1,800 were in the owner-occupier market and 700 in the buy-to-let market. In terms of arrears, the total number of mortgages with arrears equivalent to 2.5 per cent or more of the mortgage balance was 106,400, or 0.96 per cent of all mortgages, which again, was the lowest rate since quarterly records began seven years ago. Of all loans with arrears of over 2.5 per cent of balance,…
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Housing Market
Repossession levels plummet
The number of homes repossessed by lenders last year fell to their lowest level since 2006. The latest data from the Council of Mortgage Lenders (CML) shows that the number of repossessions fell to 21,000 in 2014 – 26 per cent fewer than the 28,900 in 2013. At 0.19 per cent, the repossession rate was also lower in 2014 than at any time since 2006. Out of the 21,000 repossessions, 16,100 were on owner-occupied properties, and 4,900 were on buy-to-let properties. The improvement in the rate of repossession was attributed to falling unemployment levels and continuing low interest rates. Low inflation and delays in raising interest rates are continuing to fuel a mortgage price war, with various mortgage providers slashing their borrowing rates to some of the lowest levels they have ever offered. A glance at the Bank of England’s latest quoted interest rates shows that have begun the year with a strong appetite for growth, and newcomers are going head-to-head with established names to launch attractive new deals. “Rising competition is pushing pricing to new lows, and it means consumers can choose from record-breaking fixed rate deals regardless of whether they have a 5, 10 or 25 per cent…
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