JSMedia – The Council of Mortgage Lenders, which represents UK home loan providers, has warned that 2009 will be a tough year for the housing market. The number of repossessions has fallen by over half on 2007 levels and the number of households in arrears more than doubled. The figures come as a surprise as the government’s Help to Buy scheme and other measures to help hard-pressed mortgage payers have failed to ease the pressure on the property market.
The numbers on repossessions are not completely reliable, however, because second-charge lenders are not included in the data. Although it’s hard to know whether or not these lenders are more aggressive in their practices, charities such as Citizens Advice and Shelter believe that they have less responsibility than first-charge lenders and can get away with more aggressive behaviour. Also, second-charge lenders’ borrowers are likely to have been stretched before the recession hit. This means that the real number of repossessions will be far higher than the 12800 cited by the CML. And they’ll increase even faster than the reported 51% per year.
As a result, the number of repossessions may go up or down, depending on the type of property and circumstances of the borrowers. While repossessions have been on the rise for a long time, they are expected to continue rising in the future. But this does not mean that repossessions are unavoidable. The current state of the housing market may be causing people to fall behind on their mortgages.
The Council of Mortgage Lenders Sees No Let Up in Repossessions in 2009
The number of repossessions continues to climb, but there’s good news: the number of possession orders and repossession claims have dropped significantly, as the government’s measures to curb unnecessarily high numbers have worked. But despite the slow recovery, the number of repossessions is still high. The amount of claims made against borrowers is down by almost 40 per cent, and the number of court claims is down by a similar proportion.
While repossessions are rising, the government’s recent steps to reduce them are having an effect. While the number of possession orders is up, the number of court claims is down by 40 per cent. Repossessions are still a major problem in the housing market. But these actions are paying off. The bank is losing goodwill and the bad will lose money. In the meantime, the Banks and other mortgage lenders are being forced to increase their lending standards.
Repossessions have increased by more than half since the beginning of the year, according to the latest figures from the Council of Mortgage Lenders. This trend is continuing to increase. The number of mortgages with larger arrears is down by about three per cent, while the number of repossessions with smaller arrears has decreased by one-third. Moreover, the numbers of mortgages with a larger arrears have remained stable at 1.57%, whereas the number of those with smaller arrears has dropped by half.
If you are in arrears, you need to start looking for the best possible solution. You can apply for free mortgage debt advice from the MABS. Their aim is to help you solve your mortgage problems and give you the best chance of success. When you start thinking about your situation, you’ll realize that the Council of Mortgage Lenders’ latest statistics show no let up.
The number of repossessions has risen by 2% in the past year, but there is still no sign of a halt. Nevertheless, lenders have said that repossessions have continued to fall. The Council of Mortgage Lenders reports that there is no let up in the number of mortgages repossessed. In the meantime, it has reported that the number of motor vehicles in the UK has increased by 4%, with a total of 571,300 homes repossessed.
It’s not uncommon for people to fall behind on their mortgage payments. But most lenders are willing to work with you if your circumstances are temporary and you can still make your monthly repayments. Some lenders will reduce your payments for a short period of time until you clear the arrears. Others will agree to alter the terms of your mortgage. By extending the repayment period, your monthly repayment will be lower. But remember that any changes in the loan terms should be carefully reviewed because some can add up to additional fees and interest.