Debt management: High rates of repossession 'likely to continue'

19/02/2010

Debt management
may help people struggling to meet mortgage repayment deadlines and avoid repossessions.

Recent figures from the Council of Mortgage Lenders (CML) have revealed that repossessions are expected to rise to around 53,000 in 2010.

Despite official rates of growth suggesting that Britain is officially out of the recession, this figure represents a 15 per cent increase on 2009 repossession rates.

The CML also reported this week (February 18th) that the amount of money being lent in mortgages has fallen.

While a dip between December and January is generally expected, the 32 per cent drop that took place between 2009-10 was higher than usual.

CML economist Paul Samter commented: "We remain in a period of uncertainty for the housing market and economy at large."

Unfortunately, the recovery from the recession is likely to be long and difficult for many as the CML highlighted the pattern of the early 1990s in which "the annual number of repossessions exceeded 40,000 for seven consecutive years".

The organisation added that the recovery from this recession was likely to be similar as "the number of borrowers affected by arrears and possessions will subside only slowly."

Posted by Jim Mead

Tags; Housing Debt and Bills,

• Share
• 
• 
• Store
• 
• Follow
•