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News: Home Repossessions Reach 14-Year High

Fri, 12 Feb 10

The number of repossessions reached a 14-year high in 2009, according to latest Council of Mortgage Lenders figures.

During 2009 46,000 homes were repossessed, this is up 6,000 on 2008s figure and is the highest number since 1995.

Despite the increase, the number of repossessions was not as bad as the CML had feared. At the end of 2008 the organisation predicted that 75,000 homes could be repossessed by the end of 2009. Later on in 2009 it revised this prediction down to 48,000.

The number of borrowers with mortgages in arrears was 188,300 by the end of 2009, up 3% on 2008s figure but down on the CMLs prediction of 195,000.

CML director general Michael Coogan said: "The fact that mortgage arrears and possessions did not rise as much as we feared in 2009 is testament to the effect of low interest rates and a great deal of concerted effort by lenders, government and the advice sector to help borrowers to address financial difficulties when they occur.

He indicated that the CML may revise its current predictions for 2010. The CML predicts that 53,000 homes will be repossessed and 205,000 borrowers will fall into arrears. Coogan says these figures may be a little pessimistic.

 

By Joe Lepper

See also: Life Insurance and Mortgage Protection Guide

 

 

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