on mortgage repossession
In the first six months of 2006 mortgage
repossession rose from 8,140 to 8,860 towards the last six months
of 2006. These figures were put forward by the Council of Mortgage
CML feels that there will be short-term
arrears to increase in 2007; this is due to interest rates rising.
People will feel the change more in the last six months of 2007,
as interest rates take time to get processed through into repayment
situations for borrowers. Lenders and Borrowers will try their
best to sort out any short-term payment problems without this
becoming a long-term arrears case.
“The arrears picture at the moment
is fairly complex. On the one hand, the wave of problems caused
by previous interest rate rises has now worked through, so recently
arrears levels have fallen. On the other hand, interest rates
are rising again, and payment shock may be an issue for some this
year as their existing fixed or discounted deals expire.
"Overall, we expect the
total number of mortgages at least three months behind with their
payments to rise from around 105,000 last year to 130,000 this
year, before falling back again to 120,000 next year.
Repossessions are likely to creep
up from around 17,000 last year to 19,000 this year and 20,000
next year - higher than the low of 6,030 in 2004, but still only
around a quarter of the 1991 peak of 75,540. Since 1991, we have
also gained an extra 1.9 million mortgages in the market."
Said Michael Coogan, CML Director General.
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