November 28, 2011
The majority of British homeowners have managed to climb out of mortgage arrears meaning fewer properties were taken into possession by mortgage lenders in the third quarter of 2011.
Figures from the Council of Mortgage Lenders (CML) show that 9,200 homes were taken into possession, virtually unchanged from 9,100 in the second quarter of 2011.
According to the CML, the number of repossessions in third quarter equated to 0.08% of all mortgages, and this figure has been largely the same for five of the last six quarters, with the exception of the fourth quarter of 2010, which experienced a typical seasonal dip to 0.07%.
So far in 2011, 27,500 properties have been taken into possession - 4% fewer than 2010, and experts believe it is unlikely that the total number of repossessions for the year will exceed the CML's initial forecast of 40,000.
"The fall in the number of mortgages in arrears, and the stable picture on repossessions, are testament not only to the beneficial effects of low interest rates, but also to effective arrears management, and good communication between lenders, borrowers and debt counselling organisations,” said CML Director General Paul Smee.
"Against the backdrop of widespread financial uncertainty sweeping both the UK and the wider European economies, it is impossible to be sanguine about the future influences that households may face. But lenders will do their utmost to help borrowers keep their homes, whatever pressures emerge.”
Anyone worried about their mortgage should seek early advice and talk to their lender.
“These figures firmly show that repossession does not have to be an inevitable consequence of mortgage arrears," added Mr Smee.
