Repossessions lower than expected

Posted: 08 Feb 2008 11:43:35 GMT

There were fewer repossessions in 2007 than had previously been expected, according to the Council of Mortgage Lenders (CML).

There were fewer repossessions in 2007 than had previously been expected, according to the Council of Mortgage Lenders (CML).

The organisation had forecast that there would be 30,000 in the year but the actual figure fell well below this at 27,100.

It is good news for mortgage holders and could mean that gloomy predictions for 2008 are also wrong.

The CML pointed out that the repossession rate was less than half of that seen in the first half of the 1990s and there was almost no difference between the figure for the first half of 2007 and that for the second half.

Michael Coogan, director general of the CML, said that the low figure is partly down to mortgage lenders.

"Lenders take their responsibilities to borrowers facing repayment difficulties very seriously, and many go to exceptional lengths to provide debt counselling, reschedule payments, extend loan terms, or in some circumstances even allow payment breaks," he commented.

"They abandon repossession action right up to the last moment if they can reach a payment solution consistent with both the borrower's and the lender's interests," added Mr Coogan.

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