Repossession properties increased another 18 per cent

3/08/2007

During the first six months of 2007 properties taken into repossession rose by 18 per cent compared with 2006 figures.


CML have introverted its forecasts for arrears and possessions issued towards the first quarter of 2007. There will be no forecasts until it has obtained more data to enable it to assess the likely future performance of arrears and possessions within the optional sectors of the sub-prime mortgage market. Risk levels are very different with the sub-prime market and this can sway arrears and possessions practice substantially.

CML director, Michael Coogan commented: "The sharp rise in repossessions in the first half of this year has been driven by a combination of factors, but the absolute number of repossessions is still low by historical standards.

"While the revisions are naturally unwelcome, more accurate market information is important. We will work to further improve data on both mainstream and specialist sectors.

"But anyone who thinks they may face difficulties should talk to their lender early to explore their options - lenders see possession as a last resort, but allowing arrears to mount up makes repayment difficulties more difficult to deal with, and is not a sustainable strategy for everyone."

Free Mortgage Enquiry