View more on these topics

54% Repo rise not as bad as feared

Repossessions rose by 54 per cent last year to 40,000 from 25,900 in the previous year, according to figures from the Council of Mortgage Lenders.

The total is 5,000 below the original prediction from the CML but is still the highest amount since 1996.

The figures show that by the end of 2008, 182,600 mortgages – 1.57 per cent of the total – had arrears equivalent to 2.5 per cent or more of the outstanding balance compared with 1.29 per cent, or 150,800, at the end of the third quarter of 2008 and 1.08 per cent, or 127,500, at the end of 2007.

Director general Michael Coogan says: “Despite the upward pressure on mortgage arrears and repossessions arising from the problems in the economy and rising unemployment, lenders and the Government are continuing to find more ways to help more people stay in their homes.”

New Star economist Simon Ward says the figures are encouraging when compared with the last recession. He says: “The key reason for expecting arrears’ performance to be less bad than in the early 1990s is a much lower level of income gearing. Household interest payments as a proportion of disposable income peaked at 11.9 per cent in the third quarter of 1990 but reached only 7.9 per cent at the top of the recent interest rate cycle and should fall to 4 per cent or lower as a result of rate cuts.”


Confidence builder

You may recall, that Sir Callum McCarthy’s Gleneagles’ speech used historical references to make a point about how incentives drive behaviour and how the wrong incentives can have results that are contrary to the public interest.

Shaking the foundations

Guernsey’s decision to introduce a foundations law during 2009 is the latest example of the rapid growth of foundations. The structures are increasingly popular with family offices, high-net-worth individuals and company managers. Foundations provide a series of particular benefits for asset protection, succession planning and estate management particularly for wealthy families with diverse interests. Beyond this, advisers say foundations are also useful as a part of a package of fiduciary products which can be used collectively for personal and corporate financial structuring.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm