Regulated and buy-to-let arrears improving
Yesterday’s mortgage statistics from the FSA showed that the proportion of mortgages with arrears of more than 1.5% of the balance have decreased slightly in the third quarter to 2.57% from 2.63%, with possessions slightly up from 13,600 to 14,000.
Figures from the Council of Mortgage Lenders released last month show a larger decrease in arrears – down from 2.80% to 2.61% in the first mortgage market.
The FSA statistics cover a large proportion of second charge lending, which is excluded from the CML’s equivalent figures (11,400 to 11,700 in the last quarter), and for this reason FSA possessions will always be substantially higher than the CML’s.
Commenting on the data, CML director general Michael Coogan said: “The FSA data reflects what our numbers have already portrayed. Arrears and possessions are lower than expected earlier in the year.
“The fact that the CML figures on arrears fell faster than the FSA’s may indicate that regulated and buy-to-let arrears are improving more quickly than arrears on secured loans which are not regulated in the same way.”