Repossessions 15% higher than 2008

12/02/2010

Debt management
could be required to continue to help people struggling with mortgage arrears.

According to the latest figures from the Council for Mortgage Lenders (CML), the number of properties repossessed by mortgage lenders fell by 13 per cent between the third and fourth quarter of 2009.

The CML suggested that better money management policies and lower interest rates helped to lower the number.

However, the amount of people losing their homes in 2009 was still 15 per cent higher than in 2008, with a total of 46,000 possessions throughout the year.

CML director general Michael Coogan commented: "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, the government and the advice sector to help borrowers to address financial difficulties when they occur."

He added that 2010 will still be "a challenging year for many borrowers" and suggested that "seeking advice as soon as financial problems occur will help to minimise the risk of the situation getting out of control."

Director of EuroDebt Kevin Still commented: "The CML figures suggest that homeowners with low levels of mortgage debts have been helped by low interest rates to get back out of trouble.

"However, those with more serious debt problems may have only stabilised their mortgage arrears with lender forbearance a factor in keeping them in their homes. Debt Management Plans [DMP] may be an effective transitional programme where there are also high levels of credit card debt and other unsecured borrowing."

Posted by Jim Mead

Tags; Housing Debt and Bills,

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