Home Repossessions
The Council of Mortgage Lenders (CML) reports quarterly on the levels of repossessions and payment difficulties. In the 1st quarter of 2011 they reported a 15% increase in repossessions from 7,900 to 9,100. However although the news media, like BBC, like to make shocking headlines about a large increase, the underlying figures actually show little change, mainly due to:
- 10% lower than the same time last year
- equal to the average quarterly figure in 2010
- represents only 0.08% of all loan agreements
- typically the 4th quarter does see lower reposseions, meaning the 1st quarter is always an increase
Arrears
The number of mortgages in arrears also continued to fall and now at the lowest percentage of mortgages in arrears since the 3rd quarter of 2008. 1.47% of all loans were in arrears to the equivalence of 2.5% or more of the outstanding balance.
This repesents a 2% drop since December 2010.
Yet arrears of 10% or more on the balance increased slightly although the proportion of loans, 0.24%, did not (hence a small increase).
CML director general Michael Coogan commented:
“In essence, good arrears management practice is a balance between giving households every chance to rehabilitate and get back on track, and limiting the damage in the minority of cases where this is not going to be achievable.
Fo your info, to read the BBC news report and watch the video: http://www.bbc.co.uk/news/business-13372555
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