Repossessions at their lowest since 2007
Good news, homeowners, repossessions are at their lowest level
for almost five years, the Council of Mortgage Lenders (CML) has
revealed, as the nation's property market shows signs of
stabilising.
According to the CMLs latest figures, the total number of
properties taken into possession by first-charge mortgage lenders
in 2011 was 36,200 - the lowest annual total since 2007.
In the fourth quarter of 2011, the number of repossessions was
almost 9% lower than the third quarter, at 8,500 - down from 9,300.
But it's not all positive news, as the CML claims the fourth
quarter figures are still up 5% up on the same period in 2010.
Buy-to-let properties accounted for 5,900 of the repossessions
in 2011, up from 4,700 in 2010, although this higher rate is not
reflected in overall arrears for buy-to-let properties, with the
buy-to-let sector experiencing lower level of arrears than
owner-occupied properties.
However, despite the relatively promising news on arrears and
repossessions, the CML has reiterated it will not be re-evaluating
its predictions on repossession levels for the year. Officials
still believe that by 2012's end, there will likely be around
45,000 repossessions and around 180,000 mortgages in arrears of
2.5%.
"Low interest rates and good arrears management by lenders are
helping the vast majority of those borrowers who face difficulties
to keep their homes and get back on track," said a CML
spokesperson. "This will continue, but in the face of wider
economic difficulties and rising unemployment, we are concerned
that there will be a higher number of people facing more serious
problems in 2012.
"Anyone worried about their finances should talk to their
mortgage lender and take advice on their other debts as soon as
possible. This will give them the best possible chance of staying
in their home even if they have a spell of financial difficulty.
Forbearance cannot be indefinite; but for most households arrears
are temporary and can be resolved."