Mortgage Arrears

chucky

it's good that such a large number of households falling into arrears with their mortgage repayments have managed to repay all the arrears in full.

also, it's good that repossessions are so low.

Around 97% of homeowners who fell behind with their mortgage during the period did not have their property repossessed, according to the Building Societies Association (BSA).
It found that a third of people who had got into problems had managed to repay their arrears in full, while 41% were currently repaying them.

A further 12% of borrowers had come to an agreement with their bank or building society but had not yet started to repay their arrears, and only 3% had had their home repossessed.

http://www.google.com/hostednews/ukpress/article/ALeqM5iwyq5P9c5jjKexPAY8aoyytGV2GQ

Pobby

I am very pleased that folk haven`t lost their homes. People who have bought into the most shocking ponzi scheme ruled over by that shower who call themselves the government have , at least, been given a life line.

Lotus-eater

Is this because banks and building societies are going easy on borrowers that fall behind? I thought that was the general view?

IveSeenTheLight

Lotus-eater wrote: »

Is this because banks and building societies are going easy on borrowers that fall behind? I thought that was the general view?

I would like to think that anyone who is upfront with their lender about payment problems will be able to discuss a range of options to get through the problem.
They are more likely to help if the problem is tackled upfront rather than after months of getting into arrears

It's certainly true that lower interest rates will have helped those on trackers.

There are a number of other options a lender can offer such as payment holidays, adjusting the amortization period, paying interest only for a period etc etc

chucky

Lotus-eater wrote: »

Is this because banks and building societies are going easy on borrowers that fall behind? I thought that was the general view?

yes that's the general view. the number of people that have actually repaid those arrears is a bit of a surprise.

lemonjelly

Chucky I hope the optimism in your post comes through for the many.
I fear though that there will still be a lot of people struggling - primarily those who have lost jobs, & it worries me that unemployment will continue rising which will mean more people will be at risk. (As an aside, unemployment appears to be disproportionately affecting the under 25's, less likely to be homeowners, therefore for the housing market this could have an impact?)

I worry slightly that we've just delayed for many the potential tragedy of them losing their home. Remember, a lot of people faced with this kind of situation will do all sorts to clear the debt - borrowing from freinds, family etc, or obtaining further credit elsewhere to pay off these arrears. In this type of situation, the problem hasn't gone away, merely been postponed.

I also agree with lotus eater that political pressure has caused a delay in repossession action by lenders.

I hope that this isn't just temporary good news.

BenL

Repaying the mortgage at the expense of not paying utility bills, council tax, unsecured debts?

Mortgage would be the priority so it makes sense to get it back on track.

mewbie_2

Does it say that 2/3rds have not managed to pay their arrears? Glass a third full, or two thirds empty I suppose.

halight

This is good news!
No one wonts to hear of people loseing there homes.

I hope that the banks carry on trying to help people keep there homes.

michaels

I feel I am in the twilight zone

If house prices are no longer falling it is better to keep those with arrears in their homes while racking up the charges...

Thrugelmir

chucky wrote: »

it's good that such a large number of households falling into arrears with their mortgage repayments have managed to repay all the arrears in full.

also, it's good that repossessions are so low.


http://www.google.com/hostednews/ukpress/article/ALeqM5iwyq5P9c5jjKexPAY8aoyytGV2GQ

This applies to Building Societies not banks or other financial institutions. So does not include HBOS or B&B or NR or Lehmans or GMAC for example. So is misleading as many building societies maintained quality lending during the boom.