Repossession reports may be misleading, says CML

The Council of Mortgage Lenders (CML) has stated that there may have been some confusion in the media over repossession figures.

Reports criticising banks, particularly Northern Rock, may be “misleading” as some outlets may have quoted the wrong figures, the body declared.

Some organisations may have confused the number representing the flow of properties taken into possession with the amount of homes already in possession, commonly referred to as the “stock” figure.

The CML reassured homeowners that the national rate of repossession stands at a “modest” 0.38 per cent and that over 98 per cent of people are making repayments on time.

Those who do fall into arrears usually do so because of a change in circumstances such as job losses, it added.

It comes after the CML spoke out on the state of the buy-to-let mortgages sector after the government rescued Bradford & Bingley from bankruptcy.

A proportion of the business was acquired by Abbey Santander and the rest was nationalised in a bid to prevent the lender going under.

By Jamie Price