Mortgage lenders to repossess fewer homes this year
A total of 9,400 homes were repossessed during the second quarter of 2010, down 400 from the previous quarter, and 2,400 below the figure for the same period of 2009, according to the Council of Mortgage Lenders.
The figure led it to revise its forecast for total repossessions in 2010 as a whole – it now predicts 39,000 repossessions for the year, compared with November's estimate of 53,000 and the 47,700 reported in 2009.
The number of mortgages behind with payments also fell.
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Hide AdBut mortgage lenders went to court to seek repossession of a property in Bradford for more than one in every thousand homes – one of the highest figures nationally. However it was not one of the worst 10 areas for actual repossessions as a result.
Low interest rates, increased lender forbearance and the introduction of Government schemes to help people struggling to keep up with their mortgage helped to cut the figures.
But the council said any rise in interest rates and more unemployment could put borrowers in a precarious position; it urged the Government to maintain its support for homeowners.
Its director-general Michael Coogan said: "We hope the coalition Government will not risk undermining the chances of extending the welcome trends this year by removing support mechanisms that work."
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Hide AdThe council's optimistic figures were tempered by warnings from the Government that more people were being forced into selling their home before court action was taken against them.
Research from the Centre of Housing Policy at the University of York showed financial difficulties were forcing home owners to sell up.