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09/02/2012
2011 Repossessions Lowest Since 2007, Says CML
The total number of properties taken into possession by first-charge mortgage lenders in 2011 was 36,200, according to new data from the Council of Mortgage Lenders.
This was the lowest annual total since 2007.
For the fourth quarter of 2011, the period for which new data is available, the number of repossessions was 8,500 - nearly 9% down from 9,300 in the third quarter, but 5% up from 8,100 in the fourth quarter of 2010.
On arrears, there continued to be a modest improvement across all arrears bands (see note 2) in the fourth quarter, and in 2011 as a whole compared with the previous year. At the end of 2011, 159,400 mortgages had arrears equivalent to 2.5% or more of the mortgage balance, 7.5% down from 172,400 at the end of 2010.
Buy-to-let properties accounted for 5,900 of the repossessions in 2011, up from 4,700 in 2010. The overall repossession rate was 0.32% in 2011 - 0.31% on owner-occupied properties, and 0.42% on buy-to-let. This compares with an overall rate of 0.33% in 2010 - 0.32% on owner-occupied properties, and 0.36% on buy-to-let.
The higher repossession rate on buy-to-let is not reflected in the arrears experience, however, with the buy-to-let sector experiencing a lower level of arrears than the owner-occupier sector. While the 3 months arrears rate stood at 1.98% of all mortgages at the end of 2011, the proportion was higher among owner-occupiers (2.06%) than among buy-to-let mortgage holders (1.38% if receiver of rent cases were excluded; 1.79% if included).
Although arrears and repossessions throughout 2011 were fairly stable, the CML has no current plans to revise its current 2012 forecasts for the year. Worsening unemployment and continuing pressures on the cost of living seem likely to result in some further deterioration in the position of households in 2012.
The CML anticipates that this is likely to result in around 45,000 repossessions and around 180,000 mortgages in arrears of 2.5% or more by the end of the year.
CML 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.
"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."
(GK)
This was the lowest annual total since 2007.
For the fourth quarter of 2011, the period for which new data is available, the number of repossessions was 8,500 - nearly 9% down from 9,300 in the third quarter, but 5% up from 8,100 in the fourth quarter of 2010.
On arrears, there continued to be a modest improvement across all arrears bands (see note 2) in the fourth quarter, and in 2011 as a whole compared with the previous year. At the end of 2011, 159,400 mortgages had arrears equivalent to 2.5% or more of the mortgage balance, 7.5% down from 172,400 at the end of 2010.
Buy-to-let properties accounted for 5,900 of the repossessions in 2011, up from 4,700 in 2010. The overall repossession rate was 0.32% in 2011 - 0.31% on owner-occupied properties, and 0.42% on buy-to-let. This compares with an overall rate of 0.33% in 2010 - 0.32% on owner-occupied properties, and 0.36% on buy-to-let.
The higher repossession rate on buy-to-let is not reflected in the arrears experience, however, with the buy-to-let sector experiencing a lower level of arrears than the owner-occupier sector. While the 3 months arrears rate stood at 1.98% of all mortgages at the end of 2011, the proportion was higher among owner-occupiers (2.06%) than among buy-to-let mortgage holders (1.38% if receiver of rent cases were excluded; 1.79% if included).
Although arrears and repossessions throughout 2011 were fairly stable, the CML has no current plans to revise its current 2012 forecasts for the year. Worsening unemployment and continuing pressures on the cost of living seem likely to result in some further deterioration in the position of households in 2012.
The CML anticipates that this is likely to result in around 45,000 repossessions and around 180,000 mortgages in arrears of 2.5% or more by the end of the year.
CML 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.
"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."
(GK)
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15 May 2009
75,000 Repossessions This Year 'Now Looks Pessimistic'
There were 12,800 repossessions by first-charge mortgage lenders in the first quarter of this year, according to the Council of Mortgage Lenders (CML). This compares with 10,400 in the fourth quarter of last year, and 8,500 in the first quarter of 2008.
75,000 Repossessions This Year 'Now Looks Pessimistic'
There were 12,800 repossessions by first-charge mortgage lenders in the first quarter of this year, according to the Council of Mortgage Lenders (CML). This compares with 10,400 in the fourth quarter of last year, and 8,500 in the first quarter of 2008.
18 December 2008
Mortgage Arrears 'Could Reach 500,000', CML Warns
The number of households more than three months behind in their mortgage repayments could reach 500,000, according to stark figures released today. The Council of Mortgage Lenders (CML) have warned that despite action taken by the Government and housing industry, 2009 is expected to be a "very tough year" for the UK mortgage market.
Mortgage Arrears 'Could Reach 500,000', CML Warns
The number of households more than three months behind in their mortgage repayments could reach 500,000, according to stark figures released today. The Council of Mortgage Lenders (CML) have warned that despite action taken by the Government and housing industry, 2009 is expected to be a "very tough year" for the UK mortgage market.
08 August 2008
Massive Increase In Home Repossessions
The number of mortgage arrears and repossessions of homes in the first half of 2008 have increased by 41% according to the latest data from the Council of Mortgage Lenders (CML). The CML is maintaining its forecast of 45,000 total possessions and 170,000 mortgages in arrears of more than three months by the end of the year.
Massive Increase In Home Repossessions
The number of mortgage arrears and repossessions of homes in the first half of 2008 have increased by 41% according to the latest data from the Council of Mortgage Lenders (CML). The CML is maintaining its forecast of 45,000 total possessions and 170,000 mortgages in arrears of more than three months by the end of the year.
19 October 2009
FSA Sets Out Major Reforms For The Mortgage Market
The Financial Services Authority (FSA) today set out proposals for the major reforms required in the UK mortgage market to ensure that it works better for consumers and is sustainable for all market participants.
FSA Sets Out Major Reforms For The Mortgage Market
The Financial Services Authority (FSA) today set out proposals for the major reforms required in the UK mortgage market to ensure that it works better for consumers and is sustainable for all market participants.
14 August 2009
UK Repossession Level Falls
The number of mortgage repossessions fell in the second quarter of the year, while cases of arrears levelled off, according the latest figures published today by the Council of Mortgage Lenders (CML). A combination of factors has helped keep mortgage arrears and possessions in check, despite the recession.
UK Repossession Level Falls
The number of mortgage repossessions fell in the second quarter of the year, while cases of arrears levelled off, according the latest figures published today by the Council of Mortgage Lenders (CML). A combination of factors has helped keep mortgage arrears and possessions in check, despite the recession.
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