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moonriver

Home Repossessions Fall Further In Uk

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http://www.bbc.co.uk/news/business-10950327

12 August 2010 Last updated at 11:08

Home repossessions fall further in UK

The number of homes repossessed by mortgage lenders fell again in the second quarter of the year.

Lenders seized 9,400 properties in April, May and June, 400 fewer than in the first quarter of 2010, according to the Council of Mortgage Lenders (CML).

Repossessions have now fallen for three quarters in a row since they reached a peak of 12,100 last September.

The number of mortgages in arrears also fell, dropping 5% during the quarter to stand at 178,200 at the end of June.

However, the CML's director general, Michael Coogan, said the situation was "far from a healthy all-clear".

"Mortgage difficulties have so far been contained at lower levels than we expected at the start of the year, and by comparison to the 1990s recession," he said.

"However, the safety net for borrowers is weakened by the prospect of higher interest rates, a possible rise in unemployment, [and] reduced government support for mortgage payments."

Court actions

The CML said it now expected only 39,000 homes to be repossessed this year, down from its previous forecast of 53,000.

That expectation is supported by evidence from the courts in England and Wales where the number of attempts by lenders to seize the homes of defaulting borrowers has fallen again.

In the second quarter of the year the number of possession claims launched by lenders fell by 5% to 17,774, statistics from the Ministry of Justice show.

Apart from a brief rise in the second quarter of 2009, the number of claims has been on a downward trend since the start of 2008, when they reached a peak of nearly 40,000 in the first quarter of the year.

The number of claims that were then granted by the court also fell, down by 7% from the first quarter of the year to 13,389.

That too was far lower than the peak number of more than 28,000, recorded in the last quarter of 2008.

Lender support

The CML explained that despite the apparent improvement in arrears and repossessions, some people with high arrears were still perilously close to losing their homes.

The proportion of all mortgages with the lowest levels of arrears - where payments are behind by between 1.5% and 2.5% of the outstanding loan - has fallen to 0.7%, or 80,100.

But the proportion of mortgage holders with very high levels of arrears - amounting to more than 10% of the outstanding loan - is still stuck at 26,400, or 0.23% of all mortgage holders.

"There is still a significant segment of borrowers whose arrears may have been stabilised through lender forbearance or other support, but whose situation is not improving enough to enable them to claw their way out of problems," the CML said.

"These finely-balanced arrears cases are the ones who may be at most risk of tipping into repossession if there are negative changes such as higher interest rates or reduced benefit support," it warned.

The Consumer Credit Counselling Service (CCCS) warned that repossessions were likely to rise in the coming year.

"A housing market recovery may lead to an increase in the number of repossessions as lenders enforce suspended possession orders after previous leniency," warned Malcolm Hurlston, CCCS chairman.

"This situation is likely to be aggravated in October when support for mortgage interest payments for those who have lost their jobs are halved from 6.08% to 3.09%, to match the Bank of England's average mortgage rate."

I wonder, just how many repossessions have been temporarily delayed?

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loads,it's all part of the off balance sheets games being played by zombie banks and the previous govt that used every trick in the book to keep the ponzi afloat.(verdict delayed on grounds of fairness to current mob)

absent QE,ZIRP,various feeble mechaisms to delay the inevitable,and we would have a cascade of the f*****s.

Yes, Coogan looked worried when interviewed on BBC News this morning. He cited "measures" taken by the previous government as one of the reasons for the lower than expected repossessions. He didn't say it, but he implied that the current government may not be so obliging.

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Strange that this is described as a “fall” – I thought decreases were signs of “softening” or “easing” (or are these only to be used for bad news items such as lowering house prices)

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The Consumer Credit Counselling Service (CCCS) warned that repossessions were likely to rise in the coming year.

"A housing market recovery may lead to an increase in the number of repossessions as lenders enforce suspended possession orders after previous leniency," warned Malcolm Hurlston, CCCS chairman.

A housing market recovery eh........an interesting concept Malc.

"This situation is likely to be aggravated in October when support for mortgage interest payments for those who have lost their jobs are halved from 6.08% to 3.09%, to match the Bank of England's average mortgage rate."

If he wants to know what aggravation really is, just ask those of us with savings that didn't take part in the fraud.

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loads,it's all part of the off balance sheets games being played by zombie banks and the previous govt that used every trick in the book to keep the ponzi afloat.(verdict delayed on grounds of fairness to current mob)

absent QE,ZIRP,various feeble mechaisms to delay the inevitable,and we would have a cascade of the f*****s.

What's the long term average of reposessions? I bet this is above average... seems to me all these policies simply add to the drawn-out process of this crash... they will all end up losing possession (the ones you would expect to) but it will take longer for this to happen. All these policies are simply leading to a long drawn out death!

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loads,it's all part of the off balance sheets games being played by zombie banks and the previous govt that used every trick in the book to keep the ponzi afloat.(verdict delayed on grounds of fairness to current mob)

absent QE,ZIRP,various feeble mechaisms to delay the inevitable,and we would have a cascade of the f*****s.

What's the long term average of reposessions? I bet this is above average... seems to me all these policies simply add to the drawn-out process of this crash... they will all end up losing possession (the ones you would expect to) but it will take longer for this to happen. Long drawn out death! Great.

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loads,it's all part of the off balance sheets games being played by zombie banks and the previous govt that used every trick in the book to keep the ponzi afloat.(verdict delayed on grounds of fairness to current mob)

absent QE,ZIRP,various feeble mechaisms to delay the inevitable,and we would have a cascade of the f*****s.

they're hamsters on the debt wheel now, for the next 20 years, be glad whilst THEY work hard and pay taxes on the side, whilst you can take it easy

Edited by Si1

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If someone has experienced a temporary blip to their finances which is recoverable then leniency is fine.

But if someone is so deep into a hole that they still aren't going to escape, even with all the forbearance and government support, are they only just delaying the inevitable (and accruing unpaid debt in the process)?

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If someone has experienced a temporary blip to their finances which is recoverable then leniency is fine.

But if someone is so deep into a hole that they still aren't going to escape, even with all the forbearance and government support, are they only just delaying the inevitable (and accruing unpaid debt in the process)?

Is this a question about banks? :)

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If someone has experienced a temporary blip to their finances which is recoverable then leniency is fine.

But if someone is so deep into a hole that they still aren't going to escape, even with all the forbearance and government support, are they only just delaying the inevitable (and accruing unpaid debt in the process)?

I agree, in some cases, leniency is acceptable.

Unfortunately I think there are proabably large numbers that the government has ended up supporting just because they have MEW'ed themselves into a mortgage they could not afford, so they could buy that fancy car, expensive holiday etc.

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  • 138 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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