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News: Repossession Still A Threat, Says Charity

Sun, 16 Aug 09

Homeless charity Shelter is predicting a wave of repossessions despite latest figures showing that the number of people losing their homes has fallen.

Latest figures from the Council of Mortgage Lenders for the second quarter of the year show there were 11,400 repossessions, 10% down on the 12,700 recorded during the first quarter of the year.

However, the fall is still 14% more than the 10,000 cases of repossession recorded during the second quarter of last year.

Shelter says that growing unemployment as well as the possibility of rising interest rates could leave thousands more facing the threat of losing their home in the coming months.

Latest unemployment figures, released this week, show that the jobless total is at its highest level since 1995.

A Shelter spokeswoman told the BBC: “Shelter fears a second, more devastating tidal wave of repossessions is coming as unemployment continues to rise, the recession deepens and at some point interest rates begin to climb again.”

Latest CML figures for mortgage arrears suggest that more repossessions are possible. The number of loans in arrears by 2.5% or more of the outstanding mortgage balance totalled 205,600 (1.85% of all loans) by the end of the second quarter. That compares with a total of 203,900 at the end of the first quarter of this year and 139,700 at the end of the second quarter of 2008.

CML's head of policy Jackie Bennett said:  "Lenders can only show forbearance if borrowers show a continuing determination to address their problems and discuss them with the lender at the earliest opportunity. So, the key message continues to be to talk to your lender as soon as possible when difficulties emerge and take advice from an independent money adviser if you have other debts as well as your mortgage."

 

By Joe Lepper

See also: Asking Price Index, Home Finance

 

 

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