Repossessions of home owners’ properties plunged by 93% in the second quarter of 2020 compared with the same period a year earlier, figures from a trade association show.
Just 90 home owner mortgaged properties were repossessed in the second quarter of this year – down by 93% compared with the same quarter a year earlier, UK Finance said.
Meanwhile, 130 buy-to-let mortgaged properties were repossessed – showing an 80% annual fall.
Measures have been put in place to offer relief to mortgage borrowers whose finances have been affected by coronavirus, including payment holidays and the temporary suspension of repossession orders.
There are exceptions though, including where the customer wants the repossession to go ahead or where the property is vacant – and the figures for the second quarter of this year reflect these cases.
UK Finance also said mortgage arrears levels remained low in the second quarter.
Over two million mortgage payment deferrals have been approved to date, with just under one million still in place as borrowers start to exit their payment deferral arrangements and resume their monthly payments.
There were 73,580 homeowner mortgages in arrears of 2.5% or more of the outstanding balance in the second quarter, 3% fewer than in the same quarter of 2019.
Within this total, there were 22,840 home owner mortgages with more significant arrears representing 10% or more of the outstanding balance.
This was 2% fewer than in the same quarter of the previous year.
UK Finance said that while the number of home owner arrears increased earlier this year as people’s finances were hit by coronavirus, and have remained at similar levels, overall arrears levels remain significantly down compared with previous years.
There were 5,000 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance in the second quarter – a 6% increase annually.
Within the total, there were 1,270 buy-to-let mortgages with more significant arrears representing 10% or more of the outstanding balance.
This was 5% higher than in the same quarter of the previous year.
UK Finance said the recent increase in buy-to-let arrears is relatively small and from a low base, and is likely due to the early effects of Covid-19. Again, these levels of arrears remain lower than seen in previous years, it said.