Falling Trend in Home Repossessions

During the second quarter of the year, the lenders seized 9,400 homes in UK, which were 400 less than in the first quarter. Since September last year, home repossessions have been falling continuously.

Mortgage arrears also decreased slightly showing a 5% drop during the second quarter.

Closely analyzing the situation, the Council of Mortgage Lenders (CML) has now revised their forecast on home repossessions from its earlier 53,000 to the present 39,000.

The evidence from courts in England and Wales showed that the number of attempts by the lenders to size the homes was decreased significantly.

Another reliable evidence came from Ministry of Justice which showed that the number of possession claims by lenders fell by 5%.About half of the court orders end up finally requesting the home owner to pay the money as far as possible.

CML however clarified that peoples with high arrears are likely to lose their homes despite the general improvements in mortgage repayments and the present low repossessions. These people are at risk when there is a hike in interest rates or when the government withdraws its support to the financial sector. The situation may get further worse in October when the government reduces its support for mortgage interest payments in line with the interest rate declared by the Bank of England.

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