CML reports drop in repossessions in Q2

| August 11, 2011 | 0 Comments

The Council of Mortgage Lenders (CML) has today reported a fall in home repossessions.

According to the Council, lenders seized 9,000 properties in the April to June period – 100 less when compared with the first three months of the year.

Meanwhile, there were 18,100 repossessions in the first half of 2011, compared with compared with 19,500 in the first half 2010.

Experts have previously argued that many homeowners have been saved from repossession, due to historically low interest rates, which drove monthly mortgage repayments down.

Interest rates have stood at the historic low of 0.5% since March 2009 and the Bank of England hinted earlier this week that rates will stay at this low for some time to come.

The Council is forecasting that 40,000 families will have their homes repossessed during the 2011 year.

Commenting on today’s figures, Paul Smee, director general at the CML, said: “Mortgage repayment problems have stabilised against a backdrop of stable employment and low interest rates. Despite current uncertainty in financial markets, we see no need to revise our forecasts.”

Meanwhile, the number of mortgages in arrears of between 1.5% and 2.5% of the outstanding balance rose slightly to 78,500 from 77,800 in the second quarter of the year.

Those in arrears of more than 2.5% of the balance fell to 164,500 from 166,700 over the three month period.

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