Increase recorded in repossession numbers
May 13, 2011
It has been reported recently that the number of repossessions has increased as cash-strapped homeowners once again struggle to cope with finances and keep up with repayments. The figures relating to repossessions was released by the Council of Mortgage Lenders, causing concern amongst many officials that people are now struggling again due to the soaring cost of living.
In the three months to the end of March the number of repossessions is said to have increased by around 15 percent. This followed five quarters running consecutively where the number of repossessions had actually declined. In the three months to the end of March over 9,000 properties were repossessed by lenders, which was the first increase since the third quarter of 2009.
According to the Council of Mortgage Lenders the number of repossessions could continue to soar this year, with predictions that 40,000 people or more could end up losing their homes over the course of the year. This is up from 36,300 in 2010 and officials believe that the rise will stem from the difficulties that people are facing with their finances due to frozen or falling income, soaring living costs, government cuts, and rising taxes. It is thought that at present many people are being given more breathing space due to the low base interest rate, but if this increases over the coming months the prediction could increase significantly.
An official from the Council of Mortgage Lenders stated: ‘Looking ahead, the financial position of many households is likely to be stretched for some while, and some will inevitably find themselves in difficulty. Lenders have a range of options to nurse borrowers through temporary problems, but will clearly need to be mindful of the regulator’s concern that too much forbearance may be as bad as too little.’
- 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
- 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
- Loan defaults could increase The Bank of England has warned that the level of loan defaults in the UK could go up over the next few months as a rising number of people start to experience financial difficulties for
- 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%
- Lower interest rates helping homeowners Recently released figures have shown that the lower interest rates that have been in play for the past nine months are helping many homeowners to cope better in terms of their finances. It appears that
Comments
Got something to say?