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Number In Mortgage Arrears Rises

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Number in mortgage arrears rises

http://www.google.com/hostednews/ukpress/article/ALeqM5iekOzGLboIf9uMmUyDhA7vBNXLpQ?docId=N0011241300192107688A

(UKPA) – 1 hour ago

The number of people struggling to keep up with their mortgage increased for the first time in two years during the final quarter of 2010, figures have shown.

Around 38,800 homeowners got into mortgage arrears during the three months, 6% more than during the third quarter and the first increase since the final quarter of 2008, the Financial Services Authority (FSA) said.

But despite the rise in new cases, the total number of people who were in arrears of at least 1.5% of their outstanding mortgage fell for the eighth consecutive quarter to 343,400, 7% down on the same period of 2009.

Just under 6% of these borrowers have reached an agreement with their lender under which they are making only partial repayments, or their repayments have been temporarily suspended altogether.

A further 13,764 homeowners also collectively had £40 million of arrears added to their outstanding mortgage during the fourth quarter as a way of helping them to get back on track.

Overall, lenders are currently receiving around 56% of the repayments that are due from borrowers who are in arrears, well up on the 41% they were receiving at the end of 2008.

Repossessions fell by 10% during the three months to 8,246, giving a total of 37,819 people who lost their home during the whole of 2010, well down on 2009's figure of 52,963 and the lowest level since 2007.

The figures are in line with ones reported by the Council of Mortgage Lenders (CML), which showed that the number of homes that were repossessed fell to 7,900 during the fourth quarter. A further 169,600 people were in arrears of 2.5% or more of their mortgage balance.

The CML said a total of 36,300 properties were repossessed during the whole of 2010, also the lowest level for three years.

The FSA's figures are higher than the CML's because they include second-charge mortgages and loans advanced by lenders who are not CML members.

Copyright © 2011 The Press Association. All rights reserved.

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Number in mortgage arrears rises

http://www.google.com/hostednews/ukpress/article/ALeqM5iekOzGLboIf9uMmUyDhA7vBNXLpQ?docId=N0011241300192107688A

(UKPA) – 1 hour ago

The number of people struggling to keep up with their mortgage increased for the first time in two years during the final quarter of 2010, figures have shown.

SMI rate was reduced from 6.08 to 3.45% on 1 Oct 2010.

Nothing to see here move along :P

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What's the status for the remaining 3.45%?

Apologies, the SMI rate from 1 Oct 2010 is actually 3.63%

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

Though at the time the reduction was announced, the BoE last published average mortgage rate was 3.45%

The status is that after 5 Jan 2009 new SMI recipients will get SMI for up to 2 years only.

So the SMI reduction is having an effect which is good for HPC.

Next obstacle to HPC is lenders forbearance which is only possible due to arm-twisting from HMG. For how long it will continue - nobody knows <_<

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A lot more people should be in arrears, from about 2004 to 2008 about half of all mortgages were self-certified. But only 13% of people are self employed so would actually need one. Also self-certified mortgages generally have a higher rate of interest so they wouldn't be chosen by people who didn't need them unless they wanted to overstate their income. So most likely 37% of all mortgages taken out between 2004 and 2010 were by people who overstated their income, probably by doubling so they are borrowing twice as much as they should be able to. The only reason most people can afford to pay back their loans is because base interest rates are at a historically low rate.

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Number in mortgage arrears rises

http://www.google.co...41300192107688A

(UKPA) – 1 hour ago

The number of people struggling to keep up with their mortgage increased for the first time in two years during the final quarter of 2010, figures have shown.

Around 38,800 homeowners got into mortgage arrears during the three months, 6% more than during the third quarter and the first increase since the final quarter of 2008, the Financial Services Authority (FSA) said.

But despite the rise in new cases, the total number of people who were in arrears of at least 1.5% of their outstanding mortgage fell for the eighth consecutive quarter to 343,400, 7% down on the same period of 2009.

Just under 6% of these borrowers have reached an agreement with their lender under which they are making only partial repayments, or their repayments have been temporarily suspended altogether.

A further 13,764 homeowners also collectively had £40 million of arrears added to their outstanding mortgage during the fourth quarter as a way of helping them to get back on track.

Overall, lenders are currently receiving around 56% of the repayments that are due from borrowers who are in arrears, well up on the 41% they were receiving at the end of 2008.

Repossessions fell by 10% during the three months to 8,246, giving a total of 37,819 people who lost their home during the whole of 2010, well down on 2009's figure of 52,963 and the lowest level since 2007.

The figures are in line with ones reported by the Council of Mortgage Lenders (CML), which showed that the number of homes that were repossessed fell to 7,900 during the fourth quarter. A further 169,600 people were in arrears of 2.5% or more of their mortgage balance.

The CML said a total of 36,300 properties were repossessed during the whole of 2010, also the lowest level for three years.

The FSA's figures are higher than the CML's because they include second-charge mortgages and loans advanced by lenders who are not CML members.

Copyright © 2011 The Press Association. All rights reserved.

Yes, that's going to help them isn't it? Interest on top of interest.

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  • 312 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% +
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      • Even
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      • up 5%



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