CML: Repossessions fall to lowest level since 2007
Thursday, 09 February 2012 11:53
The number of repossessions in the UK has dropped to its lowest level since 2007, helped by record low interest rates, according to data from the Council of Mortgage Lenders.
Some 8,500 homes were taken into possession by lenders in the last quarter of 2011, nearly nine per cent lower than the 9,300 recorded in the third quarter
The total volume of repossessions for the year came to 36,200, slightly lower than the 36,300 total for 2010.
There also continued to be a modest improvement in arrears during the fourth quarter and in 2011 as a whole compared with the previous year, the CML said.
At the end of last year, 159,400 mortgages had arrears equivalent to 2.5 per cent or more of the mortgage balance, 7.5 per cent down from 172,400 at the end of 2010.
But the CML warned that worsening unemployment and continuing pressures on the cost of living were likely to have a negative impact on households in 2012.
It predicts that there will be around 45,000 repossessions and 180,000 mortgages in arrears of 2.5 per cent or more by the end of the year.
Director general Paul Smee said: “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.
“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.”
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