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Repo's to rise in 2011.

Mortgage arrears and repossessions will rise modestly next year, the Council of Mortgage Lenders (CML) predicts.

Its annual forecast for the UK property market paints a picture of continued stagnation, with the current low level of sales persisting, and prices falling modestly or staying flat.

The CML says that mortgage rationing by banks and building societies will continue.

And the poor state of the economy will deter some potential home buyers.

"Given the continuing economic uncertainties, there is little to encourage buyers," the CML said in its annual market forecast for 2011.

"First-time buyers will continue to find it difficult to get into the market.
"With funding in short supply, the availability of mortgages for first-time buyers will remain limited," it added.

The level of arrears and repossessions has been on a downward trend, falling gently since the middle of 2009.

This has been due to a sluggish recovery from economic recession, and unemployment reaching a plateau just below 2.5 million people.

The finances of many home buyers have been helped crucially by the long period of ultra-low interest rates.

The Bank of England steadily cut its base rate from 5% in 2008 to 0.5% in March 2009, and it has stayed at that level since.

Despite this, the CML says there are some mortgage borrowers who will not be able to hold out any longer.

"We predict a modest increase in arrears and possessions next year, reflecting the continuing pressure on household finances, the persistence of cases of long-term arrears and the government's decision to cut help for borrowers by cutting payments of support for mortgage interest," it said.
http://www.bbc.co.uk/news/business-11992804
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Comments

  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    I think they could get it right this year [STRIKE]2009[/STRIKE] [STRIKE]2010[/STRIKE] 2011. :)
  • lemonjelly
    lemonjelly Posts: 8,014 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee!
    Really2 wrote: »
    I think they could get it right this year [STRIKE]2009[/STRIKE] [STRIKE]2010[/STRIKE] 2011. :)

    Optimist!:D
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • purch
    purch Posts: 9,865 Forumite
    Repo's to rise in 2011

    I'm sure that will cheer up some posters on here.

    You can't beat families being thrown out onto the street for a 'feel good' story.
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 15 December 2010 at 12:32PM
    you forgot this bit in your copy and paste from the article(as expected)
    It predicts that there will be 40,000 repossessions in 2011, up from an estimated 36,000 this year.
    that's 4,000 extra homes being repossessed which equals a massive and huge 0.17% of properties... it must be the next leg down... pmsl...

    these bad news threads are getting more and more desperate...
  • doire_2
    doire_2 Posts: 2,280 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    champagne.jpg
  • Blacklight
    Blacklight Posts: 1,565 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    chucky wrote: »
    you forgot this bit in your copy and paste from the article(as expected)

    that's 4,000 extra homes being repossessed which equals a massive and huge 0.17% of properties... it must be the next leg down... pmsl...

    these bad news threads are getting more and more desperate...

    As I said yesterday, what will drive the banks to sell this extra flood of properties at less than market value?

    People can gloat all they like about families with young children being made homeless and losing everything they worked for, but it won't mean you get to live in their house for free afterwards.
  • System
    System Posts: 178,374 Community Admin
    10,000 Posts Photogenic Name Dropper
    An extra 4000, games up *sells house again*
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    edited 15 December 2010 at 12:48PM
    Blacklight wrote: »
    As I said yesterday, what will drive the banks to sell this extra flood of properties at less than market value?

    People can gloat all they like about families with young children being made homeless and losing everything they worked for, but it won't mean you get to live in their house for free afterwards.
    it was obviously purely a coincidence that the anti-HPI viral spammer with 34,000 posts missed out the important peice about the news story.

    it's desperate, just desperate. a 0.17% rise in all property being repo'd is going cause 'the next leg down'...
  • FTBFun
    FTBFun Posts: 4,273 Forumite
    34290 / 1963 days = 17 posts a day, every day, for nearly 5 and a half years.

    That's some commitment to try and convince everyone that house prices will crash.
  • doire_2
    doire_2 Posts: 2,280 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    FTBFun wrote: »
    34290 / 1963 days = 17 posts a day, every day, for nearly 5 and a half years.

    That's some commitment to try and convince everyone that house prices will crash.


    Its his time so whats it got to do with you?
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