IMLA: Repossessions figures were sensationalised

Date:Thursday 30th October 2008

Recent figures reported about the level of property repossessions have been "sensationalised", the Intermediary Mortgage Lenders Association (IMLA) has claimed.

The IMLA said that the widely reported increase in repossessions in the year's second quarter to 11,054 from 6,476 a year before comprised a 71 per cent rise "over what was a relatively low base".

It explained that while repossessions are expected to rise this year to around 40,000, compared to 26,200 in 2007, this would still comprise less than one per cent of all outstanding mortgages.

It insisted that lenders and the government are trying to bring about better advice to enable people to stay in their homes.

"Talking up repossessions helps to further undermine confidence and it is important this is kept in perspective," it said in a statement.

The Bank of England has just released data relating to mortgage lending.

There was a £2.2 billion increase in the number of secured home loans last month when compared to August.

Approved loans totalled 33,000 during the 30-day period, with 72,000 remortgages made.