Loan Repossesion Numbers Falling
The effects of the credit crunch and banking crisis, coupled with the recent recession in the UK, have caused huge financial problems for many individuals who have found difficulty in maintaining the repayments on their home owner loan or mortgage.
Missed loan repayments and growing loan arrears have led to a large increase in the number of cases of repossession in recent years, which has been a major concern for the government, mortgage and home owner loan lenders, as well as loan customers.
But the latest figures from the Council of Mortgage Lenders (CML) have shown a significant reduction in the number of loan repossessions over the course of last year, with 24 per cent fewer repossessions during 2010 than there were over the course of the previous year.
There were a total of 36,300 loan repossessions during 2010, which accounts for just 0.3 per cent of the whole home owner loan market. These figures only take into account first charge loans and mortgages and does not include second charge home owner loans or secured loans.
The number of loan repossessions has now shown a reduction for a total of five consecutive quarters, which is clearly good news for the entire home owner loan market and borrowers alike.
Michael Coogan of the CML said “as we go through 2011, the number of people facing payment pressures may increase if interest rates rise and as a result of the spending cuts that have resulted in reductions in the level of public support available.”
“We will be monitoring developments closely, but at present we continue to expect the number of arrears and repossessions to be in line with our forecasts of 40,000 repossessions and 180,000 loan arrears cases at the end of 2011.”
