Home repossessions 'not as high as feared'

Posted: 07 Dec 2009 11:55:52 GMT

The number of homes that are predicted to be repossessed is not as high as lenders originally feared.

Bernard Clarke, a spokesperson for the Council of Mortgage Lenders (CML), states that the organisation has revised their repossession forecasts downwards twice in 2009.

It originally predicted that 75,000 homes would be repossessed in 2010 but the actual figure is now estimated to stand at 50,000, according to Co-operative Insurance.

Mr Clarke says that while this is clearly higher than figures it has seen in previous years, a lot of work has gone into helping borrowers through difficult economic situations to ensure that homes do not need to be reclaimed by lenders.

The government have tightened the rules on lenders taking court action for repossession to guarantee that it is the last option.

Since October 1st, mortgage providers must inform councils when repossession action is set to take place against a resident in the area. This means that councils will be able to offer advice and help to those most in need, in the hope of preventing further action.

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