Mortgage repossession predictions "encouraging"

Date:Thursday 25th June 2009
Author: Susanna Kavka

The recent revision by the Council of Mortgage Lenders (CML) concerning how many homes will be repossessed from people who cannot afford their mortgage repayments has been described as "encouraging".

Recently, the council said it anticipates that 65,000 homes will be repossessed by the end of the year.

This represents a decrease of 10,000 compared with the organisation's original prediction.

Responding to the alteration, Beccy Boden Wilks, spokesperson at the Money Advice Trust, said it was positive.

She added: "Lenders are finding workable solutions to try and keep people in their home, but it doesn't mean that people don't have mortgage arrears [and] it doesn't mean that people still aren't living with unmanageable debt and struggling."

Ms Boden Wilks added that repossession should be considered as a last resort because it is a "no-win" situation.

Debtors lose their homes and their properties are sold at auction for less than they would normally get.