More homes being repossessed
The Council of Mortgage Lenders (CML) reported today that the number of houses being repossessed by mortgage lenders in Britain rose in the second half of last year by 9% on the first half.
The yearly total of 17,000 is 65% higher than recorded in 2005 and the highest since the turn of the century.
CML analysts claim that this means one in every 690 mortgages end in repossession. At propertyfinder.com, Warren Bright commented:
Today's figures on repossessions add further evidence that the housing market had begun to slow naturally before the last interest rate increase was imposed. Repossessions still remain very low by historic standards and we are highly unlikely to see a return to the chaos of the early 1990s. Most homeowners have significant amounts of equity in their homes to cushion them against the worst. However, it is clear that further interest rate increases are unwarranted.
Comments
I think that is bad news for people who have overstretched on their mortgage, but good news for first time buyers. The more repossesions that occur, the more houses will come onto the market, as mortgage lenders resell and people try to avoid being reposssed. This means cheaper house prices all round which is bad if you already own, but good if you're trying to buy!
Posted by: conveyancing solicitors brighton | February 2, 2007 03:36 PM
Two points to note:-
It was interesting to read that the arrears on buy to let mortgages remained below that of other types mortgages.
and
I am sure the CML are merely reporting the obvious i.e. as interest rates rise arrears rise.....this is not rocket science
Regards
Lee
Landlord Mortgages
Posted by: Landlord Mortgages | February 13, 2007 05:56 PM
Awesome stuff! Thanks for all the information.
Posted by: when opponents is player it will love table | February 25, 2007 05:29 PM
We have certainly noticed a upward turn in enquiries worried about repossession. With a large portion of these from young couples and families who have only recently entered the property ladder. Less that two years ago there where many 100% deals our their trying to get these people to buy a property - now as their fixed rates end they have no where to go. The lenders standard rates are very expensive, some jumping from 4.5% to 8.5% this families just can not cover the cost of this hike in mortgage payments.
Posted by: Emily, Repossession Help Center | April 25, 2008 02:21 PM
People say repossessions will help to bring prices down and get first time buyers on the property ladder, but I do not think this will be the case as most banks are not willing to lend to first time buyers without a large deposit. And even if they can save the deposit interest rates are higher. I think what will happen is investors will buy up the properties for cash, and rent them. eg.
Posted by: repo research | April 27, 2008 01:31 PM
The more repossessions there are won't necessarily bring house prices down. As this is just an effect of something bigger at play, what it causing repossessions to rise, will also lead to house prices to reduce. It all comes down to confidence and affordability.
Posted by: Quick Sale - London | May 14, 2008 11:14 PM
Can anyone help please with the information? Dp you know where I can buy a repossessed house? Do the banks list them somewhere at all? I searched for hours online and cannot find anything....
Posted by: Lana | May 17, 2008 07:19 AM