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enrieb

Second Wave' Repossession Threat

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'Second wave' repossession threat

Thursday, 13 August 2009 00:02 UK

http://news.bbc.co.uk/1/hi/business/8199933.stm

Homeless charity Shelter is fearing a second wave of home repossessions, especially when interest rates rise.

It said that rising unemployment would add to the risk of homeowners being unable to make their regular mortgage repayments in the coming months.

The latest UK repossession figures are to be published at 0930 BST on Friday.

Although some "rescue" schemes have been slow to start, advice services say early intervention has prevented some people from losing their homes.

Unemployment

Official figures published this week showed that the number of people out of work in the UK has risen to its highest level since 1995.

Unemployment increased by 220,000 to 2,435,000 in the three months to June, taking the jobless rate to 7.8%.

However, low interest rates have eased the mortgage burden for some homeowners who have lost their jobs. The Bank rate has been at an historic low of 0.5% since March.

"Shelter fears a second, more devastating tidal wave of repossessions is coming as unemployment continues to rise, the recession deepens and at some point interest rates begin to climb again," said a spokeswoman.

Forecast

Figures published three months ago by the Council of Mortgage Lenders (CML) showed an annual rise in UK repossessions of 50% in the first three months of the year.

However, in June, the lenders' body cut its forecast for the number of homes it expected to be repossessed in 2009.

It is predicting that 65,000 homes will be repossessed this year, some 10,000 fewer than the estimate it made in December. This would still be significantly higher than the 40,000 homes repossessed in 2008.

The CML and the government believes that free advice to those who have fallen behind with mortgage payments, and "last-gasp" advice in repossession courts, have allowed many people to stay in their homes.

More intricate projects - such as schemes to allow people to sell their homes to housing associations and live in them as tenants - have had a slow start.

To date, no families have completed the "mortgage rescue" process in Scotland, six were finished by the end of May in England, and Northern Ireland is still waiting for funding to start the project. However, 70 families have been through the scheme in Wales.

Many more people might need to use these schemes in the coming months, Shelter warned.

"Recent schemes to help struggling homeowners have helped prevent the number of repossessions being as high as predicted," said a spokeswoman.

Edited by enrieb

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:lol: I heard the MRS had helped "three" borrowers overall.

But I do fear the roll out of the mortgage rescue scheme - basically taxpayers bailing out the banks in a shift towards social housing, and what was once a mortgage borrower's problem becomes socialised.

Let the mortgages die. Taxpayers don't deserve this.

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:lol: I heard the MRS had helped "three" borrowers overall.

But I do fear the roll out of the mortgage rescue scheme - basically taxpayers bailing out the banks in a shift towards social housing, and what was once a mortgage borrower's problem becomes socialised.

Let the mortgages die. Taxpayers don't deserve this.

"The scheme aims to help up to 6,000 vulnerable households over two years"

Well with say 140,000 repossessions expected in that 2 years period thats only about 1 in every 23

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Quote '"Recent schemes to help struggling homeowners have helped prevent the number of repossessions being as high as predicted," said a spokeswoman.'

there is that 'homeowner' tag again (your house belongs to the bank it is not yours till you pay the last repayment :( ) . There is an almost inevitability about the use of emotive phrases like 'struggling', 'vulnerable', hard-working families' 'right thing to do' that must feed into the absolute belief that 'they' will not let house prices drop, not let us lose our home, pay our mortgage for us. It is sad that some will be struggling through no fault of their own and when things get worse and interest rates rise they are scuppered.

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Quote '"Recent schemes to help struggling homeowners have helped prevent the number of repossessions being as high as predicted," said a spokeswoman.'

there is that 'homeowner' tag again (your house belongs to the bank it is not yours till you pay the last repayment :( ) . There is an almost inevitability about the use of emotive phrases like 'struggling', 'vulnerable', hard-working families' 'right thing to do' that must feed into the absolute belief that 'they' will not let house prices drop, not let us lose our home, pay our mortgage for us. It is sad that some will be struggling through no fault of their own and when things get worse and interest rates rise they are scuppered.

Well, when you call them 'debt' owners, it just doesn't have the same ring.

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Well, when you call them 'debt' owners, it just doesn't have the same ring.

Numpty on the BBC kept saying 'home owner'. It's doing my head in. What's wrong with mortgager or mortgage holder?

edit to change mortgaee to mortgager

Edited by bomberbrown

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Numpty on the BBC kept saying 'home owner'. It's doing my head in. What's wrong with mortgager or mortgage holder?

From: Bomber Brown

Sent: 14 August 2009 08:07

To: 'breakfast@bbc.co.uk'

Subject: Reporting on reposessions

Dear Breakfast,

Could you possibly refrain from using the emotive phrase, home owners, on reporting repossessions, it's getting infuriating. The correct term for people in arrears of a loan secured against their home and under threat of repossession is 'mortgager' or 'mortgage holder'.

Home owners are just that, they own their homes and no longer have any debt secured against it.

Best regards, Bomber Brown.

edit to change mortgaee to mortgager

Edited by bomberbrown

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