A low interest rate is one of the reasons house repossessions in the UK have been kept down of late, it has been suggested.
Speaking to the Financial Times Adviser, head of mortgage policy at the Building Societies Association - which represents all the 48 building societies currently operating in the UK - Paul Broadhead explained a considerably higher number of people in the UK would be facing difficulties if the rate was greater than the 0.5 per cent experienced at present.
The industry figure explained there are numerous reasons why repossession levels are lower than they were in the 1990s - such as increased lender forbearance, greater provision of independent money advice and responsible lending .
He stated: "We have historically-low interest rates that have been sustained for such a long period. Without doubt there would have been more borrowers facing difficulties had rates been higher."
Lenders have learnt a lot from the situation in the 1990s and have realised a one-size-fits-all approach is unlikely to prove successful, Mr Broadhead added.
Repossessions being controlled by low interest rate
Wed, 28 Sep 2011
Recommended linksRepossession advice
Why is repossession necessary?
Who undertakes the repossession process?
Rrepossession process overview
Lender chases missed payments
Lenders solicitors sends a notice
Lender starts proceedings
Repossession court hearing
Eviction notice issued
What to do if you cant pay your mortgage payments
What to do if a lender wants to repossess your home
Personal budget calculator
Equity release calculator
Compare mortgage rates
Low Interest Rates Keep Repossessions at Bay for Many Households
Increased UK Interest Rates would Mean More UK Repossessions
To Avoid Further Repossessions Bank of England Confirms Interest Rates will Stay Low
Bank Chief Warns that Wave of Repossessions will Follow Interest Rate Increase
Repossessions scale dependant on pace of interest rate change
Repossessions About to Rise as Interest Rates About to Increase
Repossessions Set to Increase as a Quarter of People Not Prepared for Interest Rate Increase
Increase in Interest Rates Could Mean More Repossessions
Increase in Interest Rates to Trigger Further Repossessions
Mortgage Experts Forecast Increase in Interest Rates
Preparation for Interest Rate Payment Increases
Increase in Interest Rates Would Spell Disaster for the UK Economy
When are Interest Rates Going to Rise
Increase in Interest Rates is Going to Mean More Repossessions
Homeowners fear mortgage interest rate rises
Interest Rates May Increase to High Level of Inflation
The Bank of England Holds Interest Rates
Families face repossession as interest rates rise and house prices dip
What Would Happen if the Interest Rates Went Up