According to figures released by the Council of Mortgage Lenders CML, the number of repossession in the first half of 2007 has increased by 30 per cent compared with the same period in 2006. However, it is not only the number of repossessions that have increased, the number of people who have arrears of three months or more has also increased.
The Council of Mortgage Lenders believe that the increase in figures is mainly due to the increase in the interest rate as people were not expecting it to go as high as it has. The Council of Mortgage Lenders is aiming to break down the figures into segmented markets in the near future.
Our view
Repossessions need to be taken in context. It takes a long time for a repossession to take place. Interest rate increases through the last two years have caused these figures in addition to people over borrowing. Sadly, we expect more of the same.
Useful Links:
Learn more about this and related topics in the Mortgage Channel
Purchase guidance on financial planning in the Money Shop