Home repossessions up 50% in a year

Permalink: Home repossessions up 50% in a year
by Kay Murchie

The Council of Mortgage Lenders (CML) have today revealed that the number of homes repossessed in the UK increased to 12,800 in the first quarter of 2009.

This represents a rise of 23% from the previous quarter and 50% up compared with the same period last year.

Last year, 40,000 homes were repossessed - the highest figure in over a decade. However, based on today’s figures, the CML said its forecast that repossessions could reach 75,000 in 2009 now looked “pessimistic” and is set to revise its forecast in the summer.

In the meantime, the number of borrowers falling behind with mortgage payments is still on the up with over one in fifty borrowers missing three or more monthly payments.

Late last year, lenders were instructed to be more sympathetic towards borrowers which involved measures such as agreeing alternative arrangements, for example, a full or partial repayment holiday,

Commenting on today’s figures, the CML’s director general Michael Coogan, said: “Lenders are acutely conscious that behind the statistics are real people, many of whom are affected by the economic downturn and its impacts on unemployment, changes in circumstances and inability to refinance.”

However, Steve Johnston, chief executive of AdviceUK, the debt advice agency, believes that their research indicates that more could be done by lenders to prevent borrowers losing their homes.