Best Loans News

Although many borrowers with large home owner loan have been struggling to stay on top of their loan repayments over the course of the past couple of years, the level of loan arrears and repossessions has fallen steadily for the last twelve months.

In many cases this has been due to financial help from the Government in the shape of things like their mortgage rescue scheme, as well as a more sympathetic and helpful approach from banks and building societies towards how they deal with their loan arrears cases.

However, the latest figures from the Financial Services Authority (FSA) have shown that there has been a significant jump in the number of repossessions throughout the first three months of this year, through borrowers defaulting on their home owner loans.

Despite the fact that loan arrears cases are continuing to fall, the number of repossessions increased by 17 per cent during the first three months of the year, the first time these figures have shown an increase in more than twelve months.

The figures have revealed that there were a total of 9,613 repossessions between January and March this year, which is 17 per cent higher than the previous three months. Despite this, the number of new loan arrears cases fell by around 8 per cent over the same period, with 35,600 new cases.

Ray Boulger of the home owner loan brokers John Charcoal, put the figures in perspective against the whole of the home owner loan market, he said “Considering the song and dance the FSA has made about arrears cases that have been capitalised, at 12,916 cases it’s a tiny amount as it works out being less than 0.1 per cent.”

“I would regard that to be a very positive figure and throws out the argument by those that say risky lending is in the market.”