News Tag: arrears
March 18, 2010
In its latest round-up of UK mortgage statistics, the Financial Services Authority has reported a fall in the number of homeowners in arrears.
In the final quarter of 2009, 378,000 households were behind with their monthly repayments (at a level equivalent to 1.5% of their outstanding balances).
The figure is down 4% on the previous quarter and represents 3.42% of ...
Year-end improvement in mortgage arrears and repossessions
by Gill Montia
February 11, 2010
Repossessions fell 13% to 10,200 in the final three months of 2009, compared to the previous quarter.
The figure, which includes home-owner and buy-to-let mortgage borrowers, was also 2% down on the same period of 2008, according to the Council of Mortgage Lenders (CML).
However, for 2009 as a whole, mortgage lenders possessed around 46,000 homes, up 15% on a year earlier but well ...
46,000 homes repossessed in 2009
by Gill Montia
January 26, 2010
Mortgage borrowers in arrears stand to get a better deal from lenders under new proposals published today by the Financial Services Authority (FSA).
The package is aimed at ensuring home owners in financial difficulties are treated fairly, by strengthen existing rules on arrears handling and promoting the regulator's "tough stance" on mortgage fraud.
Under the proposals lenders will not be able to: ...
FSA defends home owners with mortgage arrears
by Gill Montia
December 17, 2009
New data from the Financial Services Authority (FSA) show the number of homes being taken back by lenders rising 3% to 13,987 in the third quarter of 2009, compared with the previous three months.
However, repossession levels have remained fairly flat in recent months and the figure is almost 6% below the January to March level.
Meanwhile, the number of mortgage borrowers ...
Repossession up but new arrears decline
by Gill Montia
November 12, 2009
The Council of Mortgage Lenders (CML) has cut its forecast for the number of repossessions in 2009 to 48,000.
The estimate is substantially down on earlier forecasts of 75,000 in 2008 and 65,000 in June of this year, and the body says the improvement reflects "lender forbearance, government measures and the beneficial effect of continuing low interest rates".
In further good news, CML figures ...
Lenders cut 2009 repossessions forecast
by Gill Montia
October 29, 2009
One of the UK's leading sub-prime mortgage lenders has been fined £2.8 million by the Financial Services Authority (FSA) for not treating its customers fairly.
GMAC-RFC has also agreed to repay up to £7.7 million in total, plus interest, to over 46,000 of its mortgage customers.
The FSA says the case sets a precedent in that its investigation at GMAC were ...
New precedent for mortgage lenders treating customers unfairly
by Gill Montia
October 19, 2009
The Financial Services Authority (FSA) has today set out "major reforms" that it intends to impose on UK mortgage lending.
The proposed new measures are aimed at making the market "sustainable" for lenders and borrowers and reflect "a more intrusive and interventionist style of regulation".
Key features include imposing affordability tests for all mortgages and making lenders ultimately responsible ...
“Major reforms” in hand for UK mortgage lending
by Gill Montia
September 15, 2009
Research from the Building Societies Association (BSA) claims that over the last two years, the majority of borrowers who have fallen into arrears with their mortgage repayments have either caught up, or are in the process of catching up.
According to the BSA, 97% of borrowers in financial difficulties have avoided repossession with thirty-three per cent making up their repayments in full, while 41% ...
Mortgage borrowers quash arrears
by Gill Montia
August 31, 2009
Homeowners under threat of repossession and tenants on the brink of eviction have a new resource available at www.direct.gov.uk.
The site now contains articles and videos prepared by the Ministry of Justice, aimed at informing people with both mortgage and rent arrears.
The advice addresses a wide range of problems and is suitable for those who think they may have a problem keeping up their ...
Government updates repossession advice
by Gill Montia
August 21, 2009
In its latest commentary on the UK housing market, the Council of Mortgage Lenders (CML) describes the recovery seen in recent weeks as "fragile" and warns of a "modest dip" towards the end of the year, reflecting seasonal factors.
More positively, second quarter data for arrears and repossessions suggest that fewer borrowers are struggling financially than had been feared, despite a modest ...
Lenders optimistic on arrears and repossessions
by Gill Montia
August 4, 2009
Blighted by its "Together" 125% loan-to-value mortgages, Northern Rock has revealed that residential mortgage accounts over three months in arrears rose to 3.92% in the six months to the end of June.
The proportion compares with a national average of 2.39% and is up from 3.67% at 31st March 2009 and 2.92% at 31st December 2008.
Excluding "Together" loans, residential mortgage ...
Northern Rock “Together” mortgages push up arrears
by Gill Montia
Northern Rock posts first half loss
by Kay Murchie
June 24, 2009
The Financial Services Authority (FSA) has reported on its recent review of sub-prime lenders who are closed to new business, and on the third parties they instruct to handle mortgage arrears and repossessions.
The study found that both were operating "an approach focused too strongly on recovering arrears without reference to the borrower's individual circumstances".
Failings included being too ready to take ...
Sub-prime lenders too focused on recovering arrears
by Gill Montia
June 23, 2009
A "devastating" second-wave of arrears and repossessions is set to hit the UK within the next two years, according to a leading housing charity.
Shelter has called on the government and mortgage lenders to prepare for hundreds of thousands of repossessions as rising unemployment takes its toll on homeowners.
Figures release this week by the Financial Services Authority (FSA) show that repossessions have ...
Repossessions set to escalate, warns Shelter
by David Masters
June 22, 2009
The Council of Mortgage Lenders (CML) has updated its 2009 forecast for the UK housing market, reducing its estimate for repossessions from 75,000 to 65,000.
The body, whose members provide 98% of all residential mortgage lending in the UK, explains that while the housing and mortgage markets remain "extremely challenging" existing borrowers are benefiting from lower interest rates.
Other factors that should ...
CML downgrades 2009 repossession estimate to 65,000
by Gill Montia
June 19, 2009
The Government has announced an inquiry into the UK mortgage market, focusing on arrears, repossession and access to mortgage finance.
The Treasury Select Committee will undertake the study which will look at the impact of the recession on existing and potential homeowners.
MPs will collect lenders' statistics on current arrears and their forecasts for medium-term trends.
They will also consider access to mortgage finance ...
MPs to commence mortgage market inquiry
by Gill Montia
March 3, 2009
Northern Rock has reported that its home repossessions rose by 63% last year to 3,620.
Arrears also soared with 17,264 borrowers three months or more behind with their repayments at the end of 2008, up from 3,492 at the close of 2007.
The rise takes the percentage of the bank's total mortgage book in arrears to 2.92%, compared with an industry average ...
Northern Rock arrears and repossessions soar
by Gill Montia
February 20, 2009
Home repossessions rose to 40,000 during 2008, according to data from the Council of Mortgage Lenders (CML).
The figure is up 54% on 2007, although 5,000 fewer than forecast.
The CML attributes the respite to mortgage lenders making "strenuous efforts" to ensure that repossession is used as a last resort.
The body also points out that the figures included a proportion of abandoned properties, cases ...
Home repossessions up 54%
by Gill Montia
February 11, 2009
One in five homeowners could find themselves in negative equity as the recession tightens its stranglehold, the Financial Services Authority (FSA) has warned.
House prices could potentially drop by as much as 30% compared to 2007 levels, the FSA said, leaving 2.5 million mortgage holders owing more than the value of their house. This is around 21% of people with ...
One in five homeowners face negative equity
by David Masters
January 22, 2009
The Financial Services Authority (FSA) has reported that the number of home repossessions in the UK rose to 13,161 in the third quarter of 2008.
The figure had increased from 11,054 during the second quarter of last year and was up 92% on the same period of 2007.
In addition, the regulator found that the number of households with mortgage arrears rose ...
FSA reports rise in repossessions and arrears
by Gill Montia
