Pressure off for homeowners as repossession levels fall
May 13, 2010
The release of recent figures has indicated that the pressure for homeowners in the UK may have eased off, with data showing that the number of repossessions in the UK fell by 7.5 percent in the first quarter of the year. Over the past couple of years home repossession levels have spiralled out of control as a result of the credit crunch and the recession.
In the final quarter of last year the number of repossessions was reported to be 10,600. However, in the first three months of 2010 this number fell to 9,800. In the first quarter of 2009 the figure was much higher, coming in at 13,200 as homeowners struggled to keep up with their mortgage repayments in the difficult financial climate.
The figures have been released by the Council of Mortgage Lenders, and although the figures are encouraging and show signs of improvement officials from the CML have warned that many homeowners are still vulnerable and could fall victim to repossession. They added that arrears levels were also down, but that this should not make people complacent.
The CML added that as long as there are no more economic problems it might be looking at reducing its prediction of 53,000 repossession over the course of this year, although any revisions will not be made until the summer. It is thought that the main driver behind the lower levels of repossession is the rock bottom base rate, which still stands at 0.5 percent.
The CML stated: “We hope and expect to be able to revise down our 53,000 forecast for repossessions in 2010, but we are acutely conscious of the beneficial influence that low interest rates and the package of support have played so far.”
- 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
- 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
- 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%
- Homeowners need to get finances in order to cut risks A stark warning has recently been issued to homeowners in the UK - to get their finances and their homes in order to avoid becoming part of the rising number of repossessions predicted for next
- Thirty percent rise in mortgage arrears A recent report has shown that although the base interest rate has fallen to its lowest level in history, at just 0.5 percent, the level of mortgage arrears in the UK has soared by 30
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