The number of homes repossessed by mortgage lenders fell again in the second quarter of the year.
Lenders seized 9,400 properties in April, May and June, 400 fewer than in the first quarter of 2010, according to the Council of Mortgage Lenders (CML).
Repossessions have now fallen for three quarters in a row since they reached a peak of 12,100 last September.
The number of mortgages in arrears also fell, dropping 5% during the quarter to stand at 178,200 at the end of June.
However, the CML’s director general, Michael Coogan, said the situation was “far from a healthy all-clear”.
It’s the ‘finely-balanced arrears cases are the ones who may be at most risk of tipping into repossession’ said the Council of Mortgage Lenders.
“Mortgage difficulties have so far been contained at lower levels than we expected at the start of the year, and by comparison to the 1990s recession,” he said.
“However, the safety net for borrowers is weakened by the prospect of higher interest rates, a possible rise in unemployment, [and] reduced government support for mortgage payments.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.