New data released by the Council of Mortgage Lenders (CML) indicate that the number of mortgage possessions has fallen again in , the period between July and September.
A total of 8.200 homes were repossessed during the quarter which is in fact down from 8.500 in Q2. Last year during the same period , 9,600were repossessed, giving an indication that whilst people continue to struggle, more are able to hold on to their homes. The new figures are the lowest of any quarter since 2007.
The situation remains a concern and a total of 26,300 properties were repossessed in the first three quarters of 2012. Whilst this is 8% fewer than the same period last year, each of these figures is more than a statistics and represents a family clearly displaced from their community.
The overall repossession rate has been 0.07% of all mortgaged properties this quarter. There is a higher number of repossessions in the buy to let sector with 0.13% of homes repossessed compared to 0.06% in the owner-occupier sector. Landlord repossession usually takes place at the end of an agreed tenancy, when the landlord is in arrears. Repossession rates are much lower than in the 1990’s and Courts are more reluctant to order repossession and mortgage lenders have to be far more patient than in the past. It is now deemed a last resort and the low rate of repossession reflects the growing trend.
The CML director general Paul Smee commented that : "Our figures show that good communication and effective management by borrowers, lenders and money advisers are helping the vast majority of those with mortgage repayment problems. The rate of repossession has continued to fall and it's clear that lenders want to keep people in their homes."
