Repossessed Property News
Home repossessions soar by 21% (February 09, 2008)
Home repossessions soar by 21%
Around 30,000 homes were repossessed by lenders in 2007 - report
The
number of homes repossessed soared by 21% last year to reach an
eight-year high, and experts have warned the situation is likely to get
worse.
A
total of 27,100 homes were taken back by lenders in 2007 after their
owners failed to keep up with mortgage repayments, more than triple the
number three years ago, according to the Council of Mortgage Lenders.
The
figure was well down on the high of 75,540 repossessions reached during
the house price crash in 1991 and 10% below the CML's own forecast for
the year.
But the group warned that the situation was likely to
get worse during 2008 as mortgage lenders tightened their lending
criteria in the face of the global credit crunch and the economic
outlook worsened.
Michael Coogan, director general of the CML,
said: "The number of repossessions is likely to be higher in 2008 as a
result of wider issues in the economy and the mortgage funding markets."
The
number of mortgages that were in arrears of more than three months rose
by nearly 9% during 2007 to 129,800, the equivalent of just over 1% of
loans, although less than 0.5% of mortgages were in arrears of more
than six months - around a seventh of the level seen during the early
1990s. Click here to return to the News page
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