AUTOREFRESH 
UK Q2 Property Repossessions, Mortgage Arrears Fall – CML
LONDON (MNI) – UK property repossessions and the number of
mortgages in arrears both fell in the second quarter and the Council of
Mortgage Lenders revised down its 2010 forecasts.
The number of properties taken into possession fell to 9,400 in Q2
from 9,800 in Q1. The number of mortgages in payment arrears also
fell to 178,200 at end Q2, 5% down on the level at end Q1, according to
CML data.
The CML cut its 2010 forecasts for arrears and repossessions,
predicting 175,000 mortgages in arrears at end year, down from its
previous forecast of 205,000 and cut its repossessions forecast for
2010 as a whole to 39,000 from 53,000.
The CML, however, warned that there could still be difficulties
ahead for borrowers.
“Mortgage difficulties have so far been contained at lower levels
than we expected at the start of the year, and by comparison to the
1990s recession,” CML director general Michael Coogan said.
“However, the safety net for borrowers is weakened by the prospect
of higher interest rates, a possible rise in unemployment, a
counter-productive stigma hanging over mortgage payment protection
insurance, uncertainty over future debt advice funding, reduced
government support for mortgage payments, and mortgage rescue schemes
being reviewed as part of the deficit reduction plan,” he added.
Data issued by the Ministry of Justice showed that mortgage
possession claims and orders also declined in the second quarter.
There were 17,774 mortgage possession claims issued in Q2, 30% down
on a year ago and 5% down on the quarter.
The number of court orders for possessions stood at 13,389 in Q2,
29% down on the year and 7% down on the quarter.
– London newsroom: 00 44 207 862 7492; drobinson@marketnews.com
[TOPICS: MABDS$,M$BDS$,M$B$$$]
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