–Ministry Of Justice: Q2 Mortgage Possession Claims Down 3% y/y
–CML: Q2 Repossessions 9,000 Vs 9,100 In Q1
–CML: Q2 Mortgage Arrears Broadly Unchanged
–Low Rates, Stable Jobs Trend Support House Market

LONDON (MNI) – Repossessions, court orders and mortgage arrears
were down on a year ago and either little changed from, or below, Q1
levels despite the headwinds facing the wider UK economy and the housing
market, the Council of Mortgage Lenders and Ministry of Justice reported
Thursday.

CML data showed the number of properties taken into possession by
mortgage lenders in the first half of 2011 was 7% lower than in the
first half of 2010. MOJ figures showed mortgage possessions were down 3%
over the same period.

The MOJ said Q2 mortgage possession claims fell 8% from the first
quarter while CML figures showed repossessions also nudged down in Q2.

The CML data show 9,000 repossessions occurred in Q2, slightly
lower than the total of 9,100 in the first quarter, bringing the total
to 18,100 for the first half of the year, compared to 19,500 in the
first six months of 2010.

The total number of mortgages in arrears was broadly unchanged in
the second quarter of the year. However, there was a slight increase in
the number of mortgages with low levels of arrears, but a reduction in
the number in deeper arrears.

The number of mortgages in arrears of between 1.5% and 2.5% of the
outstanding balance edged up from 77,800 to 78,500. But those in arrears
of more than 2.5% of the balance declined from 166,700 to 164,500.
Overall, the number of mortgages more than 1.5% in arrears declined to
243,000 in the second quarter of this year, from 244,500 three months
earlier.

The CML said it was sticking with its arrears and possessions
forecasts on the basis of what happened in the first half. Its forecasts
are for a repossession rate of 0.35% this year, and 0.4% in 2012, which
equates to 40,000 cases of repossession in 2011 as a whole and 45,000
next year. On arrears, the forecast is for a steady position of 180,000
mortgages in arrears of 2.5% or more of the balance, representing 1.58%
of the total 11.3 million stock of first-charge mortgages.

Commenting on the data, CML director general Paul Smee said:

“Mortgage repayment problems have stabilised against a current
backdrop of stable employment and low interest rates. Despite current
uncertainty in financial markets, we see no need to revise our
forecasts. Anyone with debt worries should take advice and speak to
their lender at the earliest opportunity, as most temporary financial
problems can be resolved.”

–London bureau: +4420 7862 7492; email: dthomas@marketnews.com

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