Last week the CML revealed that arrears rose by 8 per cent over the third quarter of 2008, while repossessions rose even faster, by 12 per cent. CML director general Michael Coogan says if the Government do not help to curb these numbers, a full-blown recession is more likely.
Coogan says: “We need a full picture of the interventions the Government is going to make: the pre-Budget report is absolutely vital in finding out whether the economic problems will be addressed pro-actively by the Government and the regulator as they seem to be over recent weeks.”
Coogan says intervention must include further work with those facing mortgage arrears, more investment into the Income Support for Mortgage Interest repayments scheme, and an extension to the shared equity/sale and rent back schemes that were launched by the Prime Minister Gordon Brown in September.
“If we don’t have the interventions we need, we may have the full-blown recession that many people fear,” says Coogan.