Declining Trend In Repossessions
According to a recent figures from the Council of Mortgage Lenders (CML), repossessions fell for the fourth consecutive quarter. The 8,900 repossessions recorded in the third quarter of 2010 was 5% down on the previous quarter and 27% lower than the peak recorded in the 2nd quarter of 2009. The encouraging trend has been attributed to low Bank of England interest rates and the Government's mortgage protection scheme, which has sought to protect those most at risk of losing the family home.
According to a recent figures from the Council of Mortgage Lenders (CML), repossessions fell for the fourth consecutive quarter. The 8,900 repossessions recorded in the third quarter of 2010 was 5% down on the previous quarter and 27% lower than the peak recorded in the 2nd quarter of 2009. The encouraging trend has been attributed to low Bank of England interest rates and the Government's mortgage protection scheme, which has sought to protect those most at risk of losing the family home.
However, Ministry of Justice figures for the same period reveal the number of repossession claims by lenders (the first stage of repossession) in England and Wales rose 4% in the third quarter, indicating that the recent decline in repossessions may well be reversed over the coming months.
The CML warned of a slow progressive economic recovery but praised both the credit and debt industries for working together. “Despite the severity of the economic slowdown, and the likelihood of only a slow and protracted recovery, a combination of low interest rates and the commitment of borrowers, lenders, the government and debt advisers has helped to keep mortgage payments problems in check so far” said Michael Coogan director general of the CML.
Chief executive of Shelter, Campbell Robb, also highlighted the precariousness of the current situation many homeowners are in, “With so many homeowners in serious difficulty, the pressure could become too much and unless we take urgent action we may well be faced with a sudden surge of people at risk of losing their home in the coming months”.
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