Friday, August 3, 2007

up 17.6 % over 6 months

Home repossessions up 30 percent

The number of home repossessions rose by almost an annual 30 percent in the first half of the year. Repossessions rose 17.6 percent on the previous six months to 14,000

Posted by acidrob @ 10:09 AM (1577 views)
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One thought on “up 17.6 % over 6 months

  • From CML’s own press release:

    “At 14,000, the number of properties taken into possession in the first six months of the year rose by nearly 18% compared with the previous half-year, and nearly 30% compared with the first half of 2006.”

    “This is likely to reflect a number of factors, notably:
    The impact of an increasing amount of sub-prime lending within the overall market, where the higher risk nature of the business means that arrears are more likely to translate through to possessions, and that this is likely to happen at an earlier stage.”

    “In the light of the data revisions, the CML has withdrawn its forecasts for arrears and possessions issued at the start of the year. It will not be issuing new forecasts until it has gained more information to enable it to assess the likely future performance of arrears and possessions within the various different segments of the sub-prime mortgage market.”

    “Michael Coogan, CML director general, commented:

    ‘The sharp rise in repossessions in the first half of this year has been driven by a combination of factors, but the absolute number of repossessions is still low by historical standards. Interest rates are clearly higher than many were expecting, and are set to remain so. And the greater risks inherent in sub-prime lending are resulting in significantly higher levels of repossession in that part of the market compared to mainstream experience. This impact has been underestimated in our past market data, which we have now revised.'”

    I’ve added the bold formatting of course. “the wall”, “the writing”, and “is on” (maybe not today, maybe not tomorrow, but soon…)

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