Mortgage repossessions flat but are forecast to rise

Posted in 'Mortgages' by Barry Stamp

20 December 2011

Repossessions are set to rise in 2012, but will fall back again in 2013, according to the Committee of Mortgage Lenders. It expects that the number of repossessions will increase to 45,000 in 2012, driven by increased joblessness. In 2010 and 2011 repossessions have been flat at around 37,000.

The CML doesn’t always get it right, though. 2011’s actual numbers could turn out to be as much as 10% lower than their forecasts made at this time last year. The reason for the difference may be the ‘forbearance’ of mortgage lenders – mostly likely driven by the reluctance to take on the onerous obligations of securing and maintaining a repossessed property in a very uncertain housing market. But to be frank, it has been like that for quite a long time now. The slow property market is nothing new.

If you are having trouble paying your mortgage, rule 1 is to talk to your mortgage lender as soon as you can. The earlier you address the issue, the more options your lender can give you. If you can show that you just need time to get straight, there are ways and means of avoiding a repossession, and keeping your family in your home.

Our Debt Advice Centre is a good place to get some pointers if your financial fortunes need improvement.