First Quarter Repossession Figures
Recent repossession statistics show that there is no slow down in the housing crisis.
The current figures must be seen against the backdrop of 2007, which had been forecast to be a bad year by the Council of Mortgage Lenders even before the credit crunch hit. But despite these predictions, 2007 ended with the actual number of repossessions standing at 27,100, well below the 30,000 the organisation had expected. This represents less than 1 in 400 mortgages, but remains an increase on the previous year of around 21% and means that repossessions have been steadily rising over the last 8 years.
The Council of Mortgage Lenders has set the expected number of repossessions for 2008 at 45,000, blaming factors such as the issues currently affecting the global economy and the restrictions on lending. If they are correct, 1 in 300 homes will be taken back by lenders this year. With such a marked increase in their forecast, are the experts at the CML on track?
According to the statistics published by the Ministry of Justice on 9 May, the first quarter of 2008 shows a 9% rise in possession orders over the last quarter of 2007. If this trend continues then the CML’s forecast is very near the mark. The 9 May figures represent a 17% growth in the number of homes repossessed when compared to the same three months in 2007.
It should be remembered, however, that there are 11.8 million mortgages in the UK and the current figures are not even close to those experienced during the property crash of the early 1990s. No-one would argue with the fact that the market is seeing a slow down, but the jury is still out as to whether it qualifies as a ‘crash’.
The human factor in all this is that every one of these statistics represents heartache and distress for those who lose their home and have to accept the financial consequences. Many people think that repossession is inevitable, but that’s far from the truth. Even if mortgage payments cannot be kept up and threats are being received from lenders there are still options. The golden rule is to communicate with your lender if you are having difficulty in meeting your repayments – and talk to them before the situation gets out of hand. If your home is under threat you can stop repossession by selling to Property Rescue, who will guarantee to buy it at a valuation they will prepare for you. This service has provided a lifeline to many families who have been just days away from repossession taking place, demonstrating that it is never too late to take action.
If mortgage arrears are getting you down and your home is under threat, don’t delay. Contact Property Rescue in total confidence. Their experts will not pressure you into making a decision that you’re not happy with, but they will be pleased to explain everything to you in a straightforward manner, without any obligation.
