Repossessions Fall As Predictions Look Bleak

The Council of Mortgage Lenders (CML) has revealed 9,000 homes were repossessed in the second quarter of 2011, 100 fewer than the previous quarter. Despite this fall, the CML is standing by its prediction that there will be 40,000 repossessions this year, 3,700 up on 2010.  One of the key factors behind the pessimistic forecast is that mortgage arrears continues to climb, with the number of cases between 1.5% and 2.5% of the outstanding balance increasing 300 from the previous quarter to 78,500.

CML director general, Paul Smee, said “Despite current uncertainty in financial markets, we see no need to revise our forecasts. Anyone with debt worries should take advice and speak to their lender at the earliest opportunity, as most temporary financial problems can be resolved”.

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