The Council of Mortgage Lenders (CML) has announced that the number of mortgage arrears in the second quarter of 2016 was down 13.4% compared to the same period last year, a MortgageStrategy.co.uk article reported in August 2016.
The CML predicts that mortgage arrears could soon fall to their lowest level since 1982.
The total of repossessions for both buy-to-let and owner-occupied houses was also down, dropping from 2,100 to 1,900, in the first quarter of 2016.
The Council of Mortgage Lenders director, Paul Smee, said:
“Another welcome reduction in arrears and possessions shows that borrowers are continuing to prioritise their mortgage commitments and that lenders remain committed to helping them through a period of temporary difficulty, wherever possible.”
He advised people having problems keeping up with mortgage payments to speak to the lender as early as possible.
Many people get into financial difficulties through unemployment. Mortgage protection insurance provides financial protection by covering the mortgage payments if a borrower loses their job through an accident, illness or redundancy.
Several financial experts have suggested that mortgage protection insurance advice should be an essential part of the mortgage advice process. According to an FTAdviser.com article from August 2016, Gary Little, an ex-official of the Society of Mortgage Professionals wants protection advice to be a required component of mortgage advice. He said:
“Protection must be a mandatory part of the mortgage advice process; how can you not talk though protecting a known debt?”
Mark Graves of advisors Sesame Bankhall said that mortgage advisors had a “moral duty” to discuss mortgage protection with their clients.