Repossession properties increased another 18 per cent
During the first six months of 2007 properties taken into repossession
rose by 18 per cent compared with 2006 figures.
CML have introverted its forecasts for arrears and possessions
issued towards the first quarter of 2007. There will be no forecasts
until it has obtained more data to enable it to assess the likely
future performance of arrears and possessions within the optional
sectors of the sub-prime mortgage market. Risk levels are very
different with the sub-prime market and this can sway arrears
and possessions practice substantially.
CML director, Michael Coogan 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.
"While the revisions are naturally unwelcome, more accurate market
information is important. We will work to further improve data
on both mainstream and specialist sectors.
"But anyone who thinks they may face difficulties should talk
to their lender early to explore their options - lenders see
possession as a last resort, but allowing arrears to mount up
makes repayment difficulties more difficult to deal with, and
is not a sustainable strategy for everyone."
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