Repossession fall in Q1 2010
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The number of mortgages in arrears and the number of repossessions both fell in the first quarter of 2010, according to the Council of Mortgage Lenders.
However, the trade body says people who are only just coping remain vulnerable to any shocks in the economy.
Repossessions as a proportion of all mortgages were 0.09 per cent in the first quarter, the same as the previous quarter, and down from 0.12 per cent in the first quarter of 2009.
The total number of repossessions was 9,800, down from 10,600 in the previous quarter and 13,200 in the first quarter of 2009.
The number of mortgages in arrears also fell. The total proportion of loans with arrears equivalent to 2.5 per cent of the mortgage balance was 2.38 per cent, down from 2.52 per cent in the previous quarter and 2.81 per cent in the first quarter of 2009.
The number of loans in arrears was down from 206,800 in the first quarter of 2009 and 196,400 at the end of last year to 186,300 in the first quarter of 2010.
The CML also release today data showing that buy-to-let activity settled back to former levels, following a modest upturn in house purchase by investors at the end of last year triggered by the stamp duty holiday.
Buy-to-let loans declined by 15 per cent to 22,000 in the first three months of 2010. Over the same period, the value of lending also declined, by 12 per cent to £2.1bn.
Commenting on the arrears figures, director general Michael Coogan says: “With all eyes on the new government and what steps it will take to address the fiscal deficit, we cannot emphasise too strongly the importance of continuing to fund the support mechanisms that are proving effective in containing mortgage arrears and repossessions.
“We hope and expect to be able to revise down our 53,000 forecast for repossessions in 2010, but we are acutely conscious of the beneficial influence that low interest rates and the package of support have played so far. The dampening effects on households and the wider housing market that fiscal tightening is likely to exert are still to be felt, but it should be a key priority to support borrowers most in need and maintain funding for the Government’s housing policies.”
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