1. Home page
  2. Our blog
  3. Stop Repossession – UK Home Repossessions begin to fall

Our blog

Stop Repossession – UK Home Repossessions begin to fall

Last week, the Council of Mortgage Lenders (CML) reported figures that the number of homes being reposed last year in the UK had dropped by around 24% to 36,300, resulting in a fifth quarterly fall in a row. The number of people in arrears by 2.5% or more of their outstanding loans also decreased last year, by 13% to 169,600. The CML also stated that the drop was anticipated by the trade association, and it stuck to its full-year forecast of 40,000 repossessions in 2011.

Reasons attributed to the positive news include the fact that continued low level interest rates has helped many homeowners who were previously struggling with financial difficulties. However, homeowners are warned that this is a temporary trend and they expect repossessions to rise again over the coming months if the Bank of England raises interest rates.

"As we go through 2011, the number of people facing payment pressures may increase if interest rates rise, and as a result of the spending cuts that have resulted in reductions in the level of public support available" said the CML's director general Michael Coogan.

As the rate of inflation rises, many have to endure pay freezes and unemployment is expected to grow as a consequence of the governments national spending cuts, which will also test the resilience mortgage holders. Now the next quarterly review will be eagerly anticipated to see if the recovery of the UK economy is improving.

If you are looking to sell your property quickly, then contact The London Property Buyers NOW on: 0800 879 9889

Add comment

Leave a Reply

View comments