UK home repossessions up in Q3, arrears down-CML

inspector_monkfish

09:30 12Nov09 -UK HOME REPOSSESSIONS RISE TO 11,700 IN Q3 FROM 11,400 IN Q2 2009 -COUNCIL OF MORTGAGE LENDERS
09:32 12Nov09 -UK CML CUTS REPOSSESSIONS FORECAST FOR FULL-YEAR 2009 TO 48,000 FROM 65,000
09:37 12Nov09 -UK home repossessions up in Q3, arrears down-CML

LONDON, Nov 12 - The number of homes repossessed by lenders in Britain rose slightly to 11,700 in the three months to September from 11,400 in the three months to June, the Council of Mortgage Lenders said on Thursday.

Compared with the same period a year ago, repossessions were up 5 percent.

There was a fall in the number of people who fell behind with their mortgage repayments in the third quarter, with the number of loans in arrears by 2.5 percent or more of the outstanding mortgage balance totalling 194,600, 1.77 percent of the total, down from 204,200 at the end of June.

The CML also cut its forecast for home repossessions this year to 48,000 from an earlier forecast of 65,000.

It said the forecast was being cut "in recognition of lender forbearance, government measures and the beneficial effect of continuing low interest rates".

Graham_Devon

Don't want to see anyone reposessed, it must be a horrible situation to find yourself in. But I would have thought it would have fallen, due to the last sentence.

Suppose this is where you can see some good from government intervention and pumping money in. Less people get turfed out.

Dread to think what the numbers would be if we let the economy take it's natural course.

StevieJ

As predicted by many on here twelve months ago, yes there was some logic behind some of the bullish forecasts on this board last year.

lemonjelly

Levels of repossessions are ridiculously low, given the circumstances we find ourselves in.

Figures will slow over the next 2-3 months, as courts are unwilling to grants evictions or repossessions in the run up to Christmas, as it makes them look heartless. I've seen this from both sides - as an adviser I've worked on cases where I or colleagues have been able to say, with confidence that a person will not be evicted/repossessed due to the time of year. At the same time, I've worked for a HA & tried to get repossession on a property, & had it stayed for 2-3 months because Christmas is approaching.

I think the mortgage rescue scheme is halting a ton of actual repossessions. I've discussed before my neighbour, who in March had over £10k mortgage arrears, & as far as I'm aware hasn't paid a penny since. They've applied to the mortgage rescue scheme. IMO it is a delaying tactic - no more. They have an extension built without planning permission, so no HA is going to take it on. In addition, it has allegedly come to light (to the feigned shock of the neighbour) that 3 seperate companies have charging orders on the house, as they are also owed money.

Add in the fact that the house is also £20k in NE.

Now, there is no way this is an isolated case. I would wager there are a lot of people who will be in similar types of circs, who are applying to the mortgage rescue scheme who will never get any help from it. Figures of those who have recieved help are laughable. For some, it is a false hope of survival. However there are others (& gut instinct tells me they'll be the majority) will use this to play a system in a vain attempt to stay in their house as long as possible.

I worry that there could be gluts of repossessions in 2010, when the mortgage rescue scheme processes have been exhausted.

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"The number of people who lost their homes rose by only 3% during the third quarter of the year despite rising unemployment, figures showed today ..."

Read the full story:
Repossession rise slower than expected

Really2

Looking at employment figure ages tis seems to be down to the people of owning age retaining there jobs not just housing benefit.

We all know the under 25's have borne the brunt of unemployment, I think the figures (guesses) were based on what had happend previously when people in manufacturing were made redundant (70's 80's)
Unemployment has been different this time.

Not great but at least with parents retaining a job these youngsters are still having a roof over there head and support of some kind.

chucky

Graham_Devon wrote: »

Suppose this is where you can see some good from government intervention and pumping money in. Less people get turfed out.

absolutely - it's about time that you gave the current incumbents some credit for their actions.

Graham_Devon wrote: »

Dread to think what the numbers would be if we let the economy take it's natural course.

probably much higher causing all sorts of social problems... another good thing that Mr Brown seems to have done.

StevieJ wrote: »

As predicted by many on here twelve months ago, yes there was some logic behind some of the bullish forecasts on this board last year.

and only if people had realised then... :rolleyes:

Thrugelmir

From the CML

Commenting on the latest arrears data and on the new forecasts, CML director general Michael Coogan said:

"We are glad to have been wrong on our previous forecast for mortgage repossessions this year. Low interest rates, and lenders' forbearance policies, have helped to cushion many households facing financial problems. And although the economy is not out of the woods yet, we no longer expect a dramatic rise in properties being taken into possession unless interest rates rise from the low levels that most commentators now expect to persist for some time.
"Borrowers should take heart from the latest findings, as they reinforce the fact that lenders really do want to keep people in their homes - and are doing so.
"In terms of new lending next year, we expect a modest increase. But it is difficult to see the case for a dramatic upturn in the absence of significant improvement in the wider economic picture. There is a risk that public spending cuts and higher taxes could choke off recovery. So, although we have become more optimistic, we remain cautious about market prospects."

http://www.cml.org.uk/cml/media/press/2456

Pobby

I do remember the last recession and it appeared far more street from street level. I knew a number of people thrown out of there houses or businesses. Currently I know of one person without work but he is a building contractor and this tends to happen from time to time.

I was in Reading walking down what used to be a busy shopping area in the early 90`s. So many places closed up. A couple of kids came up to me begging for money. There was a real sense of things being very bad then.

I go into the city and apart from some shops closed it still seems busy to me.

Mind you, not having Thatcher and her lot ramming up IRs every five minutes is a real help.

Emy1501

chucky wrote: »

absolutely - it's about time that you gave the current incumbents some credit for their actions.

probably much higher causing all sorts of social problems... another good thing that Mr Brown seems to have done.

and only if people had realised then... :rolleyes:

I going to be at least 12-18 months after QE finishes before anyone can really give the government any credit for what they have done.

RBS and lloyds are still in dire straights and the money being pumped in is masking the problems we have. Once printing stops and the economy is able to stand on its own feet for a while then GB will be given credit for what he has done.

We are a long way from the above though.

Thrugelmir

Emy1501 wrote: »

I going to be at least 12-18 months after QE finishes before anyone can really give the government any credit for what they have done.

RBS and lloyds are still in dire straights and the money being pumped in is masking the problems we have. Once printing stops and the economy is able to stand on its own feet for a while then GB will be given credit for what he has done.

We are a long way from the above though.

You don't give credit to a Captain of a ship who steers his ship onto the rocks, and then helps his passengers get safely to shore.

The current actions are necessary. Over that there's no discussion. The broader issue outside of the banks is the state of the wider economy and the dependancy on state spending.