CML Reveals Rise in Third Quarter Mortgage Repossessions This Year

This was due to many people feeling pressure on their household budgets although it also stressed that the total number of repossessions by the end of 2011 are set to be lower than previously expected. The CML’s report said that in the three months to September, there were some 9,200 repossessions in the UK, compared with 9,100 in the previous quarter. The total number of repossessions in the year up to September stands at 27,500, it went on, a 4 per cent drop compared to the same time period in 2010. As a result, the CML said that the overall number of mortgage repossessions this year are likely to fall short of the previous forecast number of 40,000 especially since figures also record a slight drop in the number of people falling behind on their mortgage repayments. It explained that by the end of September 2011, the total number of mortgages which had arrears of 2.5 per cent or greater of the outstanding balance dropped to 161,600 representing 1.44 percent of all loans which was a significant 8 per cent lower than the 175,100 cases at the end of September last year or 1.55 percent of all mortgages. Despite these encouraging signs, the CML urged householders not to be complacent, pointing out that increasing pressure on UK consumers’ incomes could result in more mortgage-holders falling behind with their payments in the next few financial quarters. The council’s director general Paul Smee commented: “Against the backdrop of widespread financial uncertainty sweeping both the UK and the wider European economies, it is impossible to be sanguine about the future influences that households may face.”

Published on 9 November 2011

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