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UK repossessions up 50% in a year UK repossessions up 50% in a year
(20 minutes later)
The number of homes repossessed in the UK rose to 12,800 in the first three months of the year, the Council of Mortgage Lenders (CML) has said.The number of homes repossessed in the UK rose to 12,800 in the first three months of the year, the Council of Mortgage Lenders (CML) has said.
This was up 23% from the 10,400 in the previous three months and 50% up on the 8,500 in the same period last year.This was up 23% from the 10,400 in the previous three months and 50% up on the 8,500 in the same period last year.
The CML has predicted that 75,000 homes will be repossessed in 2009, almost double the 40,000 of last year.The CML has predicted that 75,000 homes will be repossessed in 2009, almost double the 40,000 of last year.
But the group has now described this prediction as "pessimistic" and could change its view in the summer.But the group has now described this prediction as "pessimistic" and could change its view in the summer.
The figures were described as "pretty ugly" by Chris Tapp, director of debt charity Credit Action.
'Downturn'
The CML's director general Michael Coogan said that lenders were keen to assist anyone who got into difficulties with repaying their mortgage.
"Lenders are acutely conscious that behind the statistics are real people, many of whom are affected by the economic downturn and its impacts on unemployment, changes in circumstances and inability to refinance," he said.
These real people include Tracey Myers, who told the BBC's Propertywatch programme how a spiral of debts left her in danger of losing her home a few years ago.
"It was awful. I wouldn't want anyone to go through it. There is no way out - no matter how much you show people you are trying to sort things out, they just want their piece back," she said.
Protocol
The number of home loans with arrears of more than 2.5% of the mortgage balance rose by 12% from 182,600 in the fourth quarter of 2008 to 205,300 in the first three months of this year, the CML said.The number of home loans with arrears of more than 2.5% of the mortgage balance rose by 12% from 182,600 in the fourth quarter of 2008 to 205,300 in the first three months of this year, the CML said.
This was 62% up on the 127,000 in the first quarter of 2008.This was 62% up on the 127,000 in the first quarter of 2008.
In November, the major lenders formally agreed to a minimum three-month delay before starting repossession proceedings, although they argued this was standard practice in the industry anyway. The figures were described as "pretty ugly" by Chris Tapp, director of debt charity Credit Action.
In October, lenders were told that if they went to court to gain permission for a repossession they would have to show they had obeyed a new legal protocol. Debt dangers
This required them to show that they tried to discuss and agree alternative arrangements, which might include a full or partial repayment holiday, changing the type of mortgage or extending the repayment term. I resigned myself to the fact it was going to be repossessed. I waited for the knock on the door. I had everything packed Tracey Myers class="" href="/1/hi/business/8036362.stm">Three-year battle to keep home class="" href="/1/hi/england/somerset/8046821.stm">Mortgage rescue claim is rejected
Lenders have come under increasing pressure to help out borrowers in trouble.
There is help available for people in danger of losing their homes. Tracey Myers nearly lost her home a few years ago.
"It was awful. I wouldn't want anyone to go through it. There is no way out - no matter how much you show people you are trying to sort things out, they just want their piece back," she told the BBC's Propertywatch programme.
"I resigned myself to the fact it was going to be repossessed. I waited for the knock on the door. I had everything packed - I lived in a shell so at least if they came to evict me, I could get everything out. It was just a waiting game."
But, helped by the Scottish Mortgage Rescue Scheme - she managed to keep her home. A similar scheme in England offers people the chance to sell some or all of their home and rent it back from a social landlord.
A separate UK-wide scheme allows people who have temporarily lost their income to defer a proportion of their mortgage interest payments for up to two years.
Lender help
In November, the large lenders agreed to a minimum three-month delay before starting repossession proceedings. Many said this was standard industry practice.
In October, lenders were told that in order to gain court permission for a repossession, they would have to show they had tried to discuss and agree alternative arrangements with borrowers. These alternatives could include a full or partial repayment holiday, changing the type of mortgage or extending the repayment term.
Lenders are keen to assist anyone who got into difficulties with repaying their mortgage, Michael Coogan, the CML's director general said.
"Lenders are acutely conscious that behind the statistics are real people, many of whom are affected by the economic downturn and its impacts on unemployment, changes in circumstances and inability to refinance," he said.
"While initiatives such as mortgage rescue and the home-owner mortgage support scheme are not appropriate for everyone, they have encouraged more borrowers to discuss their options with lenders and money advisers, which is helpful," said Mr Coogan.
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