CML: Repossessions rose in 2008

Date:Friday 20th February 2009
Author: Susanna Kavka

By Max Freedman

Levels of mortgage arrears and home repossessions increased from 2007 to 2008, new figures show.

According to the Council of Mortgage Lenders (CML), there were 10,400 properties repossessed by first charge mortgage lenders in the final three months of 2008.

This was 6,900 more than in the same period in 2007, although it was a decline from the previous quarter's figure of 11,100.

However, there were 5,000 fewer repossessions in 2008 than had been anticipated.

At the end of 2008's third quarter, 1.29 per cent of mortgages were in arrears of 2.5 per cent or higher of the outstanding debt.

By the end of the year, the proportion was 1.57 per cent.

But Michael Coogan, director-general of the CML, stated: "Despite the upward pressure on mortgage arrears and repossessions arising from the problems in the economy and rising unemployment, both lenders and government are continuing to find more ways to help more people stay in their homes."

Earlier this week, the CML reported that gross lending had dropped in January to its lowest monthly figure since April 2001.