House Repossessions Increasing

We posted this information on 7 February 2006 - In 2008, the forecasts seem woefully inaccurate as property repossessions soar towards record levels:

According to the Council of Mortgage Lenders, the number of properties repossessed in the second half of 2005 increased by 22% compared to the first half.

This figure was accurately predicted by the CML and although low by historical standards, is still 70% higher than 2004.

The total number of repossessions in 2005 was 10,260. Of those, 5,630 occurred in the second half of the year.

This figure is still nowhere near the dark days of 1991 when negative equity was rampant in the UK property market and 38,000 properties were repossessed in the second half of that year.

Mortgage Arrears

In 2005, the number of mortgages in arrears of between three and six months rose to 59,700 in the second half of 2005 which is an increase of 3% on the first half of the year and a worrying 11% higher compared to the end of 2004. In total, 106,000 mortgages were in arrears by more than 3 months.

Of more concern is the fact that arrears of 12 months or more were 23% higher at the end of 2005 that a year earlier.

CML Forecast for 2006

The Council of Mortgage Lenders repossessions forecast for 2006/7 indicates another rise to around 12,000 - a further 10% increase on 2005 figures.

The CML's forecast for mortage arrears of more than 3 months in 2006 and 2007 is 120,000.

These figures are not alarming and in fact, are comparitively low. However, they do demonstrate that an increasing number of people are facing difficulty in paying for their homes.

If you are in this situation and would like to sell your property quickly, before running into more difficulties, please contact us in total confidence.

See also Free Debt Advice