Two-Year Low for Home Repossessions in Q1 2010
According to findings from the Financial Services Authority (FSA), during the first three months of 2010 the properties of 10,500 home owners were repossessed - 11 per cent fewer than were repossessed during the previous quarter.
The number of people who fell behind with their mortgage payments also decreased during that same period. Approximately 40,500 people fell behind with payments during the first quarter, which is 2 per cent fewer than fell behind during the previous three months.
This decrease was part of an additional improvement in the number of people who were behind with their mortgage payments for the third quarter in a row. This means that only approximately 3.23 per cent of all mortgage holders - that is 362,000 people - were in arrears on their mortgage payments, according to Telegraph.co.uk.
The Council of Mortgage Lenders (CML) published similar figures to the FSA. The CML showed a two-year fall to 9,800 in the number of repossessions for the same period.
The figures published by the FSA are higher than those published by the CML because they include loans offered by lenders which are not CML members and second-charge mortgages. A combination of increased forbearance by mortgage lenders, low interest rates and Government support schemes have meant that the numbers of repossessions during the economic downturn have remained lower than initially expected.
It had been predicted by the CML that the number of people to lose their homes would reach 53,000 this year. The CML admitted this forecast was "pessimistic" and said it was likely to be revised in line with the figures.
UK Property news posted by Marilyn on 24 June 2010
