Repossession figures could be set to rise

Wed, 17 Aug 2011

While the number of home repossessions over the second quarter of 2011 was down seven per cent year-on-year, it has been claimed that there could be a spike in the number of Brits losing their homes in 2012.

According to the Council of Mortgage Lenders (CML), those with debt worries should seek advice and speak to their home loan provider as soon as possible in order to resolve any issues and guard against repossession.

The body has refused to alter its total repossession forecasts for 2011 and 2012 - 40,000 and 25,000 respectively - despite statistics showing that the number of homes in arrears of between 1.5 per cent and 2.5 per cent of the outstanding balance was up to 78,500 in the second quarter.

CML director general Paul Smee said: "Mortgage repayment problems have stabilised against a backdrop of stable employment and low interest rates. Despite current uncertainty in financial markets, we see no need to revise our forecasts."

However, Obligo director Chris Gardner warned that the repossession figures are being kept "artificially low" by interest rates and lender forbearance.

He suggested that the UK could be sitting on a timebomb of repossession problems if either of these factors change.

In other news, the Finance and Leasing Association recently reported that the number of second charge mortgage repossessions was down in the first six months of 2011.

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