Repossession outlook 'not as bad as feared'

Monday, December 7th 2009

Government moves to help borrowers facing repossession may be working as forecasts have been slashed, according to an industry spokesperson.

Repossession figures are expected to reach 53,000 next year - down from the 75,000 predicted at the start of 2009 according to Council of Mortgage Lenders spokesperson Bernard Clarke.

This is still an increase on previous years due to the economic situation, but the outlook "is not as bad as feared" thanks to government schemes for borrowers, said Mr Clarke.

New court rules came into force at the start of October 2009 requiring mortgage lenders to inform councils when they begin repossession action against local residents.

This means that councils can offer help to those affected straight away. The schemes help "borrowers in difficulty to focus on their problems earlier and seek advice and work out a solution with the lender", said Mr Clarke.

The Co-operative Insurance also predicts figures of over 50,000 in 2010 and has doubled its support to housing and homelessness charity Shelter by donating £10 for every home insurance policy bought online.

Over 400,000 UK households are falling behind with rent and mortgage payments according to a report by The Co-operative Insurance, published on December 2nd 2009.