You are here: Home - Mortgages - Buy To Let - News -

Repossessions fall to lowest level since crash

0
Written by:
08/11/2012
The level of mortgage repossessions fell to its lowest since the financial crisis during the last quarter, according to the Council of Mortgage Lenders.
Repossessions fall to lowest level since crash

The report said that 8,200 properties were taken into possession during the three month period between July and September, a fall from the figure of 9,600 posted for the same period last year.

This was the lowest quarterly number of properties repossessed since 2007, the CML said that significant usage of forbearance by lenders had kept repossession figures low.

Figures released by the Ministry of Justice today said that the number of possession claims, recorded when a claimant begins the legal process to repossess a property, were also down. It said 15,050 mortgage possession claims were issued in the second quarter of 2012 less than half the level seen during 2008.

The MoJ estimates that around 69% of mortgage possession orders led to actual repossessions, a sharp rise on the 44% conversion rate seen in 2008.

The CML number of mortgages with more than three months in arrears was 218,400 at the end of the quarter, the lowest number in four years.

However, there was an increase in the number of mortgages with arrears totalling more than 10% of the outstanding balance with 29,000 cases noted in the report. The number of mortgages with arrears of over 2.5% fell year-on-year to 159,100.

CML director-general Paul Smee commented: “Our figures show that good communication and effective arrears management by borrowers, lenders and money advisers are helping the vast majority of those with mortgage repayment problems. The rate of repossession has continued to fall and it’s clear that lenders want to keep people in their homes.”

Richard Sexton, director of e.surv chartered surveyors, said: “Long-term arrears have risen yet repossessions are down, which is thanks to lenders’ generous forbearance policies.

“The issue is whether this is a sustainable approach in the long-term. This is the fourth quarter in a row where arrears of 10% or more have increased, yet repossessions have remained broadly flat.

“Banks won’t be able to go on absorbing long-term arrears into their balance sheets infinitely, and they also have a duty of care to ensure borrowers don’t build up ‘too much’ debt by allowing them to stay in a property if this is unsustainable.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2223694-bank-of-england-london
UK exits recession as interest rates stay on hold

The Bank of England has kept interest rates on hold for the 44th consecutive month and refrained from launching a...

Close