Rise and fall in store for repossession levels

Tue, 20 Dec 2011

Home repossession levels in the UK are set to rise in 2012 before beginning to fall back the following year, it has been claimed.

According to HML, this sum will escalate by around seven per cent over the coming 12 months, with modest increases expected across all regions of the nation.

However, the repossession rate to be endured in Northern Ireland is forecast to be more than four times greater than that seen in the south-west of England.

Damian Riley, director of business intelligence at the group, explained the high rates anticipated for 2012 will come as a result of sizable mortgage arrears in 2011.

The industry figure stated: "Although interest rates continue at historically low levels and look set to remain that way during 2012, the worsening economic situation will inevitably put pressure on household incomes."

He observed there remains a stock of 27,300 loans that include debts of more than ten per cent of their outstanding balance at present.

The prediction comes after the Council of Mortgage Lenders recently claimed the number of repossessions in the UK next year is expected to climb to 45,000.

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