I have just seen an article stating that mortgage lenders have hit a 12 year low in mortgage right offs this year.
The article goes on to say that the Bank of England show that the amount of lender write offs is 79% lower than last year and even lower than pre-credit crunch figures.
Their seems to be many factors that include more equity in property and lower interest rates to name two.
Here is the article if you want to read
This makes for an interesting situation.
If the Bank of England raises the rates and the banks follows suit will that cause a higher repossession rate? The answer must be yes, meaning the powers at be are going to have to manage increases in interest rates very carefully to insure people can manage their payment and avoid repossession.