Council of Mortgage Lenders sticking to repossession forecast

Fri, 17 Feb 2012

The Council of Mortgage Lenders (CML) has claimed it is sticking to its repossession predictions for 2012.

According to the organisation, it is expected that around 45,000 homes will be taken into possession over the next 12 months - a marked increase on the 36,200 instances recorded by first-charge mortgage lenders in 2011.

However, the CML has defended its high estimate for the coming year, claiming the figure is based on economic analysis, such as the anticipation that a greater number of struggling households are likely to see their budgets stretched even further this year, as well as a weakening employment market.

The group said it cannot ignore problems that could potentially affect the economy in the near future, but explained a period of stabilisation is expected in the last six months of the year.

In addition, the CML - whose members account for around 94 per cent of residential mortgage lending - pointed out the predicted repossession levels for 2012 would still fall significantly below that seen in the early 1990s and will be on a par with those witnessed in 2008 and 2009.

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