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cashinmattress

Figures Set To Show Rise In Repossessions

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Figures Set To Show Rise In Repossessions

Figures released later today are expected to show a sharp rise in the number of people who lost their homes in the second quarter of the year.

An estimated 65,000 people will lose their homes this year

The Council of Mortgage Lenders (CML) has predicted 65,000 people will have their properties repossessed during 2009, the highest level since 1992.

Around 12,800 people had their homes taken back by mortgage lenders during the first quarter, 50% more than a year earlier.

The figure for the second quarter is expected to be even higher, as rising unemployment continues to take its toll on people's ability to cope with their debt.

But the CML has scaled back its prediction for repossessions during the year.

It originally stood at 75,000, but was decreased due to a range of Government initiatives to help struggling homeowners and increased forbearance by lenders.

Government initiatives include the Mortgage Rescue Scheme, under which people can sell some or all of their home to a social landlord and rent it back.

Also included is the Homeowner Mortgage Support scheme, which enables people to defer paying interest on up to 70% of their mortgage for up to two years.

Other Government initiatives have so far had a less dramatic impact on repossession figures.

The most recent data on the Mortgage Rescue Scheme showed it had helped just six families by the end of May, although updated figures are due out imminently.

The biggest factor that is thought to be helping people who are struggling financially to stay in their homes is low interest rates.

Lower rates have made interest-only mortgage payments more affordable, and reduced the speed at which people are running up arrears.

Meh. Interest only mortgages is just a fancy word for rent, as the vast majority of folk will never pay off the principal.

It would be interesting to know how many folk are keeping the baliff away by deferring their payments through insurance or government support shemes. I have a feeling that there are a heck of a lot in this case.

However, this is all acedemic now. The reality is that we are not going back to pre-2007 mania in this country, and with all the job losses and reduced tax take, the state will (is) no longer be able to prop up a failed system.

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Not according to BBC local radio this morning...their headline was the the CML said they were lowering their forecast for the number of repos.

Clever spin again I think.

Edited by TheCountOfNowhere

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