New predictions have revealed that repossessions may reach 50,000 in 2010, although this is still lower than was originally thought.
Commenting on the latest figures quoted by The Co-operative Insurance, Bernard Clarke of the Council of Mortgage Lenders (CML) said that the CML has revised their statistics twice so far this year and, while these numbers are higher than in the past, the outlook “is not as bad as feared”.
He cited the economic backdrop as a reason for the rise in repossession forecasts and noted that work has been done to help those homeowners in debt, which is why the number of actual repossessions is lower than was thought.
“Lenders have been looking at every possible way they can extend forbearers to borrowers in difficulty,” Mr Clarke remarked, adding that low interest rates have also been of some assistance.
Furthermore, housing minister John Healey recently announced that those with mortgage arrears are to be afforded better protection, with tighter rules regarding court action in place.
By Sarah Adie