Struggling homeowners still need support
The Council of Mortgage Lenders has warned the Government against complacency as the number of repossessions goes down.
The CML released figures today which give the number of repossessions in the UK as 9,800 in the first quarter of 2010, down from 10,600 in the previous quarter and 13,200 in the first quarter of 2009.
The government also released statistics today showing its mortgage rescue scheme has helped increasing numbers of households to avoid repossession.
The Communities and Local Government department data reveals 353 households in England were helped through the scheme in the first quarter of 2010. It recorded 2,199 households as having approached local authorities at risk of repossession and in a priority need category.
This was up from the 182 helped in the last quarter of 2009, with 1,889 then approaching the local authority for help. By the end of the second quarter last year, just 17 households in England had been helped by the scheme.
The CML also noted the proportion of mortgages in arrears in the UK fell to 186,300 at the end of the first quarter this year from 206,800 at the end of the first quarter of 2009 and 196,400 at the end of last year.
Michael Coogan, director general of the CML, said he believed low interest rates had helped reduce repossessions but that households with the greatest problems were still struggling to restore their financial position and repay arrears.
‘With all eyes on the new government and what steps it will take to address the fiscal deficit, we cannot emphasise too strongly the importance of continuing to fund the support mechanisms that are proving effective in containing mortgage arrears and repossessions,’ he said.
‘We hope and expect to be able to revise down our 53,000 forecast for repossessions in 2010, but we are acutely conscious of the beneficial influence that low interest rates and the package of support have played so far.’
Mr Coogan added the effects of ‘fiscal tightening’ were yet to be felt. ‘It should be a key priority to support borrowers most in need and maintain funding for the government’s housing policies,’ he said.
The CML, Shelter and Citizens Advice, have jointly written to the new chancellor George Osborne to encourage him to make a commitment in his first Budget to extend current support measures for people with mortgages in the most financial difficulty.
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