Home repossession down – but not out

Home repossessions fell to a three-year low during 2010, but are expected to rise again this year.

The Council Of Mortgage Lenders says around 36,300 properties were repossessed last year.This is a 24% fall on 2009 and the lowest level since 2007.

Contributing factors to the low rates are low interest rates, a reluctance among lenders to seek repossession, as well as Government schemes to help borrowers. But a change of fortune is forecast, due to the Government’s spending cuts and an expected rise in interest rates.

The CML estimates that austerity measures will hit initiatives such as the Mortgage Rescue Scheme, which allows borrowers to sell some or all of their home to a social landlord and rent it back.

CML director general Michael Coogan said: ‘Lenders are continuing to work hard to help their borrowers who face temporary financial difficulties - with repossession a last resort.’

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