Repossessions continue to fall
The number of properties being repossessed fell to its lowest rate since the financial crisis, figures from the Council of Mortgage Lenders (CML) have shown.
The trade body said repossessions fell to 21,000 in 2014, a 26% drop on the previous year.
This meant the repossession rate has fallen to 0.19%, the lowest figure since 2006.
Owner-occupier properties were the most commonly repossessed with 16,100 recorded during the year. This compares to 4,900 on buy-to-let properties.
The CML also reported fewer mortgages were in arrears at the end of year, again the lowest levels since 2006. It said 116,800 loans were in arrears of 2.5% or more of the mortgage balance, down from 144,600 a year earlier.
However, some 24,700 loans have arrears of greater than 10% of the balance.
Separate research from HML predicts repossessions will continue to decline in 2015 thanks to declining unemployment and low inflation.
It said Greater London would experience 2,641 repossessions this year, more than any other area of the UK.
Richard Sexton, director of e.surv chartered surveyors, said: “This really boils down to people having more money in their pockets than a year ago. Savers may have suffered while the base rate has stayed low, but for those on the edge of the repossessions cliff, it has allowed them the respite needed to claw back their finances and move back into financial security.
“Moving forwards, the Mortgage Market Review will ensure that future borrowers are able to keep up with repayments, despite fluctuations in interest rates.”