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Repossessions reach 14-year high | Repossessions reach 14-year high |
(20 minutes later) | |
The number of people who had their homes repossessed reached a 14-year high during 2009, figures have shown. | The number of people who had their homes repossessed reached a 14-year high during 2009, figures have shown. |
The Council of Mortgage Lenders (CML) said 46,000 homes were repossessed last year, the highest number since 1995. | The Council of Mortgage Lenders (CML) said 46,000 homes were repossessed last year, the highest number since 1995. |
That was an increase of 6,000 on the total for 2008, but was lower than the CML's most recent forecast of 48,000. | That was an increase of 6,000 on the total for 2008, but was lower than the CML's most recent forecast of 48,000. |
Lenders took 10,200 properties into possession in the fourth quarter of 2009 - 13% lower than in the third quarter. | Lenders took 10,200 properties into possession in the fourth quarter of 2009 - 13% lower than in the third quarter. |
That was also a drop of 2% on the last three months of 2008. | |
In December 2008 the CML had predicted 75,000 homes would be repossessed in 2009. | In December 2008 the CML had predicted 75,000 homes would be repossessed in 2009. |
'Challenging year' | |
In terms of payment difficulties, 188,300 mortgages ended the year with arrears equivalent to at least 2.5% of the outstanding mortgage balance, the CML said. | |
This was lower than the total of 195,000 it had anticipated, and 3% lower than at the end of the third quarter of 2009. But it still marked a 3% rise on the end of 2008. | |
CML director general Michael Coogan said: "The fact that mortgage arrears and possessions did not rise as much as we feared in 2009 is testament to the effect of low interest rates and a great deal of concerted effort by lenders, government and the advice sector to help borrowers to address financial difficulties when they occur." | |
As a result, the CML said that its current forecast for 2010 of 205,000 arrears cases and 53,000 properties taken into possession may be "a little pessimistic". | |
However, Mr Coogan added: "We are not out of the woods yet - 2010 will still be a challenging year for many borrowers, and some households will inevitably find their finances being squeezed if and when interest rates do eventually rise." | |
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