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…