September 17, 2010
The number of people losing their homes fell to its lowest level for more than two years during the second quarter of 2010, figures showed.
A total of 9,978 properties were repossessed by lenders during the three months to the end of June, 5% fewer than the first quarter and the lowest since the recession’s onset in 2008, the Financial Services Authority (FSA) said.
The downward trend looks set to continue, with the number of people who fell behind with mortgage repayments simultaneously falling for the sixth consecutive quarter.
Approximately 37,200 people got into mortgage arrears during the relevant three months, 8% fewer than the previous quarter.
The overall number of people in arrears of more than 1.5% of their outstanding mortgage also continued to fall, dropping to 351,100, or just over 3% of all mortgages.
The figures are in line with those reported by the Council of Mortgage Lenders (CML) earlier this year, which showed that the number of repossessed homes fell to 9,400 during the same period, while 178,200 people were in arrears of 2.5% or more of their mortgage balance - 5% fewer than during the previous quarter.
The drop led the CML to slash its prediction for repossession numbers for the whole of 2010 to 39,000, down from its previous estimate of 53,000.
Experts claim that repossession levels have remained lower than expected during the economic downturn due to a combination of low interest rates, government support schemes and increased forbearance by lenders.
However, thousands of homeowners are still being stung by lenders and should consider how best to approach the future before financial difficulties become unassailable.
“With nearly 10,000 homeowners losing their homes over the past three months, I would urge all those with mortgage worries to seek early advice and speak to their lenders, and would expect lenders to have exhausted every possible option to help their customers before seeking repossession,” commented Housing Minister Grant Shapps.
