mortgage repossessions continue to fall

out_of_cash

think repos are falling not because things are getting better but people are using their savings insurance policys etc to keep mortgages afloat until they find work,also bankruptcys are not down either its just more people are taking advantage of debt relief orders signing up for ivas etc just creative accounting going on anyone remember the goverments figs on unemployment a few mths back approx 2.5 million turns out its closer to 6mil they didnt factor in all the different claimants taking people off of jsa and putting them on new deal with the now glorious title work fair"slave labour" we have half the country working in ware houses and shops which i dont see people wrushing out to buy new houses.Bottom line we are in a true economic mess.

just my opinion.

ILW

I would guess the reason fort he increase in those struggling is just that payback time has arrived from all the daft borrowing over the last decade or two.

neverdespairgirl

Thanks for the link, ISTL.

There has been an undoubted fall in the number of repossessions, a statistically significant fall.

I've looked at the report. One thing that's interesting is the number in arrears of 2.5% or more of the outstanding balance - back of a fag packet calculation suggests that this is 5-6 months in arrears - quite a lot, really.

des_cartes

lemonjelly wrote: »

http://www.bbc.co.uk/news/business-11733556

a 5% drop on the previous quarter.

Looks like there will be less distressed sellers.

Either that, or the next wave is coming after the public services cull.

(take your pick, depending on your pov;))

The CML do express some concerns however, as high level arrears appears to be worsening, and there also appears to be more people with low level arrears. Mid level arrears is fairly stagnant. This has lead the CML to advise that repossessions could rise in coming months.

Interesting that lenders are increasing the amount of possessions claims they are making. Also interesting is that this is leading to a knock on of an increase in the amount of possessions claims being granted.

So. Thoughts?

Interest rates - can only go up
SMI - reduced by 40%
housing benefit - being cut yoy for the next 5 years
1m job losses in the next few years

Just a possibility that the trend might be short lived .

globalds

This is only from what I read ...And mainly on this web site.

Borrowing on credit cards and the interest on credit cards seems to have changed massively over the last couple of years.

This would , I recon, have a much greater effect on people who are already walking a fine line.

2 1/2 years ago I was still stoozing £9500 on a virgin card at 0% having paid 1% BT ...

This year I have noticed even my HSBC card has lowered my limits , a card I only ever use to pay for plane tickets.

If I was relying on CC to get me through then all this talk of lower interest is nonsense , Most CC interest has almost doubled in the last 2 years for any one who has an outstanding balance at the end of the month.