May 31, 2011
As we move into summer, figures show that the number of homes repossessed in the first three months of the year rose drastically.
For five consecutive quarters, home repossessions by lenders have shown a decline in numbers. But according to industry figures from the Council of Mortgage Lenders (CML), 9,100 homes were repossessed in the first quarter of 2011, a 15% increase on the fourth quarter of 2010.
However, while figures may not appear to garner optimism, home repossessions are still 10% lower than the same period in 2010. As a result, the CML has refused to alter its full-year forecast of 40,000 repossessions for 2011, confident that low interest rates were helping offset the impact of squeezed household incomes.
According the regulator, lenders have also been warned that being too generous with borrowers getting behind on payments could cause problems, as could repossessing homes quickly without giving householders the chance to overcome difficulties.
"Looking ahead, the financial position of many households is likely to be stretched for some while, and some will inevitably find themselves in difficulty," said Michael Coogan, CML Director General.
