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Warning over home repossessions
Monday August 16th 2010
Homeowners are being reminded to take out adequate mortgage payment protection amid fears that any hike in interest rates, and a rise in unemployment, could result in more people having their properties repossessed.
Mortgage lenders reported a decline in repossessions in the quarter to June, thanks in part to low interest rates, increased lender forbearance and the introduction of Government schemes to help people who are struggling to keep up with their mortgage.
More than 9,400 homes were repossessed, 400 less than the previous quarter and 2,400 less that the same period last year year, leading to the Council of Mortgage Lenders revising its forecast for repossessions in 2010 down to 39,000 from the estimate of 53,000. They were 47,700 repossessions in 2009.
Fewer people also fell behind with mortgage payments as 178,200 loans had arrears equivalent to 2.5% or more of their mortgage balance. This was 5% lower than the previous quarter and 17% lower than 12 months earlier.
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