Repossession risk set to rise in Q3 and Q4

Wed, 03 Aug 2011

The risk of having your home repossessed could be set to rise in the second half of 2011, it has been predicted.

According to the Association of Arrears Mediators (AAM), the number of at-risk borrowers is expected to increase in the third and fourth quarters of the year.

The body's figures show that 9,872 pre-eviction visits were carried out between January 1st and the end of June this year - a 23 per cent drop.

However, pre-litigation visits were up 12 per cent year-on-year to 71,865 in the same timeframe and AAM independent chairman Ray Hugill explained that the organisation expects the number of pre-litigation and pre-eviction visits it carries out to increase as time goes on.

The expert noted that lenders have been adjusting their forbearance policies and this is likely to have a knock-on effect on the home repossession market.

"In helping to keep people in their homes by re-establishing a relationship with the lender, it is pleasing to see that the feedback received from borrowers, in general, welcomes the opportunity to talk to third parties and fits nicely into the Treating Customers Fairly regulatory requirements," Mr Hugill added.

In other news, the Council of Mortgage Lenders recently urged the Scottish government to step in to stop delays in repossession proceedings.

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