Property Facts

REPOSSESSIONS AT A 37-YEAR LOW

  • Just 6,950 homes were repossessed during 2018, the equivalent of just 0.06% of all homes with an outstanding mortgage. Repossessions are at their lowest level since 1981, with nearly 700 fewer properties repossessed than in 2017.
  • To put this figure in perspective, there were nearly 50,000 repossessions at the height of the financial crisis in 2009, and 75,500 in 1991, the peak since records began.
  • Repossessions have fallen each year since 2009. The Mortgage Market Review came in to force in 2014 as a result of the government’s desire to curb irresponsible lending. 95% of new mortgage deals are also fixed rate, providing homeowners with more certainty over monthly expenditure.
  • Low and stable interest rates are also a key factor. Currently, mortgage interest as a percentage of income is 7.1%. In 2009 it was 11.1%, while in 1991, the figure was a staggering 21.4%.

James Forrester
James Forrester MD of Barrows & Forrester Property Group and Author of The Birmingham Property News Blog.
http://www.birminghampropertynews.co.uk

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