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Repossessions fall in second quarter

October 15, 2009 by admin  
Filed under News, News-Mortgages

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Since the onset of the global credit crunch, and with interest rates having soared over 2006 and 2007, many homeowners have struggled to keep up with their mortgage repayments, which led to soaring repossession levels in the UK. The numbers of repossessions over the past couple of years have made for gloomy reading, prompting the government to take action such as slashing interest rates to an all time low.

However, a recent report has shown that in the second quarter of this year the number of repossessions in the UK has dropped by 9 percent, and industry officials have claimed that this is down to a combination of factors.

The rock bottom base interest rate of 0.5 percent is one of the factors that has been attributed to falling repossession numbers. Another factor that is claimed to have helped cut repossession numbers is the way in which cases are now handled by courts and lenders.

Between April and June of this year 13,610 homes were repossessed in the UK, and this compared to the 14,884 homes that were repossessed in the first quarter of the year between January and March.

However, compared to the second quarter of last year repossession levels are still up by around 23 percent. The Financial Services Authority has said that one of the main reasons behind the quarterly drop in repossessions is likely to be the changes that have been made in relation to how repossession orders can be granted by courts.

One official said that it was also down to the fact that people were becoming more confidence about approaching their lenders when they ran into financial difficulties. He said: “Borrowers that have been in arrears believe that their lender has been helpful and has treated them fairly. Those that face payment problems should therefore not be daunted by their arrears, but should take control of the situation by seeking help as soon as they can.”

Tags: control, situation, drop, mortgages defaults, recent report, repossessions, reading, second quarter

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Comments

One Response to “Repossessions fall in second quarter”
  1. Sell and Rent Back says:
    October 20, 2009 at 4:41 pm

    This is good news. I read earlier in the year that banks and lenders were being far to trigger happy and quick to start repossession proceedings it seems they are taking a different stance now. I think I read on BBC News that around 70,000 repossessions are expected this year. I wonder if this figure is still accurate given the Q2 drop?

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