"The Council of
Mortgage Lenders have released figures showing that the number of
repossessions has fallen. Nice to see some positive news!"
Indeed, as recently reported by
The BBC, the number of homes being repossessed has fallen to a five year low.
The CML reported that there were 8,200 repossessions during the third quarter
of 2012 which is the lowest quarterly figure since 2007.
There are, though, some
underlying concerns. Whilst the number of borrowers in arrears is stable at
159,100 and the number of repossessions is falling, this is reflective of
record low interest rates and lenders showing restraint with those borrowers in
difficulty. Lenders have been under pressure not to repossess properties unless
it is genuinely a last resort; they also have to jump through many hoops to
successfully obtain Court permission to seize a borrower's home.
Long term arrears have risen but
Banks won't be able to go on absorbing arrears into their balance sheets
indefinitely, and they also have a duty of care to ensure borrowers don't build
up too much debt by allowing them to stay in a property if this is
unsustainable.
