UK Repossessions Fall as Arrears Increase

Mon, 15 Aug 2011

Home repossessions are decreasing but arrears are increasing.

Fewer people are having their homes repossessed however, mortgage arrears have increased.

The Council of Mortgage Lenders stated that the number of repossessions dropped by 1% in the second quarter of 2011 to 9,000, in contrast to 9,100 in the first three months of 2011 .

An arrears time bomb is expected next year.

The number of mortgages in arrears stands at between 1.5% and 2.5% as the outstanding balance inched up from 77,800 to 78,500 in the second quarter of 2011. The CML has not revised its total repossession forecasts for 2011 and 2012, which remain at 40,000 and 45,000 respectively.

It is vital if you are in financial difficulty and cannot meet your mortgage payment that you seek financial advice. Repossession ought to be a last resort.

Low interest rates and lenders forbearance have ensured that repossessions have been lower than they would otherwise have been.

Mortgage experts are warning of lenders getting impatient and impending increases in interest rates .

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