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Repossesions reach 14-year high
Friday February 12th 2010
The number of people who had their homes repossessed hit a 14-year high in 2009, according to new figures.
The Council of Mortgage Lenders said 46,000 homes were repossessed last year, the highest number since 1995 and 15% more on 2008.
But the figures were lower than the group's forecast of 48,000, a figure revised twice after a predicted flood of repossessions failed to materialise.
There was a slowdown in the number of homes taken over by lenders during the fourth quarter of the year, with 10,200 properties repossessed - 13% less than during the previous three months.
A further 188,300 homeowners had fallen behind with their mortgage by the end of 2009 and were in arrears of at least 2.5% of their outstanding debt.
This was 3% lower than during the third quarter and down on the CML's forecast of 195,000.
A combination of low interest rates, increased lender forbearance and the introduction of Government schemes to help people who are struggling to keep up with their mortgage, helped to keep repossession figures far lower than forecast.
But the CML warned that the economy was not "out of the woods" yet, and said 2010 is likely to be a challenging year for many homeowners.
The new figures could see more homeowners considering the benefits of mortgage payment protection insurance, which covers repayments in the event of sickness or unemployment.
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Copyright © Press Association 2010
If you're looking for great value, high quality Mortgage Payment Protection Insurance with added benefits you've found it.