Repossessions fall in second quarter

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: mortgages defaults, reading, control, repossessions, second quarter, situation, drop

Financial fraud on the rise

Financial fraud in the UK is growing with new statistics showing that the problem is far from going away.

CIFAS, the UK’s Fraud Prevention Service, has found that almost all types of financial fraud have increased in the country between 2006 and 2007.

Research by the organisation focuses on results from the first quarter of 2006 and the same period this year and it does not make for good reading.

According to CIFAS, application fraud, which sees people lying in order to obtain credit cards, loans, bank accounts or insurance, has increased by 21 per cent in the last 12 months.

Identity fraud is also on the rise, with cases increasing by 12 per cent and current address and previous address fraud are also growing.

“These quarterly figures show a worrying escalation in many types of financial fraud,” commented Peter Hurst, chief executive of CIFAS.

“The scale of fraudulent activity is alarming. It emphasises the need for businesses constantly to be alert when dealing with applications.”

Despite large growth in many areas, CIFAS says that it has been experiencing positive results in its bid to prevent fraud.

According to figures released by the organisation, fraud prevention activity saved organisations £94,000 per hour, compared to £74,000 per hour for the same period in 2006.

Tags: application fraud, Deception, previous address fraud, reading, identity