Home reposessions fall in UK

The number of homes repossessed by mortgage lenders fell again in the second quarter of the year.

Lenders seized 9,400 properties in April, May and June, 400 fewer than in the first quarter of 2010, according to the Council of Mortgage Lenders (CML).

Repossessions have now fallen for three quarters in a row since they reached a peak of 12,100 last September.

The number of mortgages in arrears also fell, dropping 5% during the quarter to stand at 178,200 at the end of June.

However, the CML’s director general, Michael Coogan, said the situation was “far from a healthy all-clear”.
It’s the ‘finely-balanced arrears cases are the ones who may be at most risk of tipping into repossession’ said the Council of Mortgage Lenders.

“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,” he said.

“However, the safety net for borrowers is weakened by the prospect of higher interest rates, a possible rise in unemployment, [and] reduced government support for mortgage payments.”

BBC News

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell