An expected increase in the number of people defaulting on loan payments should not be considered startling, according to one expert.
Victoria Barnard, policy adviser at the Building Societies Association, stated that the decline in people being evicted from their properties signifies individuals and lenders are starting to work together to help reduce the number of people defaulting on payments.
She said: “A reduction in the number of cases going all the way to repossessions [shows that] â€¦ more forbearance is going on to help these people stay in their homes.”
Individuals should not be overly alarmed by the figures, Ms Barnard added, as it was a situation likely to occur in a recession.
According to Bank of England statistics released on July 2nd, there has been an increase in default rates on household secured lending and the losses on loans in default in the three-month period leading up to mid-June
The institution also predicted these figures to continue rising in the future.
By Francis Finch