Repossession levels may not be as high as predicted
July 16, 2009
The Council of Mortgage Lenders has stated recently that the level of repossessions likely to go ahead over the course of this year may not be as bad as originally estimated, and as such the agency has revised its original prediction over the number of repossessions that will take place over 2009.
The CML had originally forecast up to 75,000 repossessions over the course of this year, but it has now stated that it is revising this figure to 65,000, which is 10,000 fewer than it had originally expected.
Whilst the figure has dropped reports are quick to point out that the revised number is still much higher than the 40,000 repossessions seen over the course of last year, and is at the highest level since 1992.
However, the CML has said that it is measures such as the all time low base interest rate and the various measures and initiatives that have been put into place by the government that have eased the situation and enabled the original forecast to be downwardly revised.
There was also a cut in the CML’s original prediction with regards to how many households were likely to fall into serious arrears with their mortgage loans over the course of this year. This figure has also been revised downwardly by around 15 percent, with the CML predicting that around 360,000 households will fall into significant arrears with their mortgage loans this year.
However, despite the downward revision on the original figure, this will still be far higher than the 182,600 that were in serious arrears over the course of last year. Officials from the CML said that the current low interest rates were helping many homeowners to avoid getting into serious arrears.
- Repossession levels have rocketed There has been a huge jump in the level of repossessions in the UK since the start of this year, according to a recent report. Since January of this year repossession levels have jumped by
- Rise in repossession orders According to a recent report there has been a significant rise in the number of repossession orders being filed. Another report has already shown that there has been a rise of 41% in actual repossessions
- Mortgage default levels haven’t peaked yet Over recent years a rising number of people have fallen behind on their mortgage repayments, with financial problems being fuelled by the global credit crunch and the recession. This rise in the level so mortgage
- Struggling homeowners to be helped by government According to a recent report the government is to offer help to struggling homeowners who have properties worth up to £400,000 in value. The help is to be offered to homeowners that fall behind on
- Drop in insolvency numbers A recent report has shown that the number of people that are being declared insolvent in the UK has fallen across England and Wales. The third quarter of the year saw a drop of 3%
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