Repossessions Fall 27,000 Below Predictions

Repossessions may have risen by 3% compared to the previous quarter, but due to our historically low interest rates the number of repossessions for this year is 27,000 lower than previously predicted by the Council of Mortgage Lenders.

In the Financial Services Authority (FSA) report, they revealed how over 13,987 properties were repossessed during the 3 months leading to September, which although high is still 6% lower than the first 3 months of this year.

Also in their report the FSA divulged how over 46,000 people have fallen into arrears with their mortgages by at least 1.5%. Yet still, these figures are 10% lower than the last quarter and 30% lower than the peak achieved in the final quarter of 2008.

It is undeniable that these reductions in repossessions suggest that more is being done to help homeowners who are struggling to meet their mortgage payments. However this couldn’t be further by the truth…

AdviceUK, Citizens Advice Bureau and Shelter have all published reports stating that unless lenders do more to help their applicants, more and more families will find their homes at risk of repossession.

Discussing this issue they revealed that in a third of reported cases, lenders are failing to adhere to new rules where repossession can only be used as a last resort. Instead lenders are choosing to ignore his ‘pre-action protocol’, and are quickly turning to repossession as a means to help regain their losses. In many instances not offering homeowners any help at all…

More worryingly, only a few judges have addressed this lack of action by lenders and have taken them to court.

Looking at these figures, low interest rates may not be enough to save homeowners from repossession. Only prompt action by lenders can help turn this problem around.

Original Article

More About the Author

Peter Franklin, Property Mentor Delegate

I used to believe stocks and shares were the only way forward, yet after 15 years of property investing, neither of these can compare with the sheer velocity or impact that property investment can have on your bank account. Only with property can you truly experience the power of being in control of immediate cash flow AND capital appreciation. Stocks and shares simply cannot compete. Read more