Repossession numbers fell by a quarter in 2010 - Mortgages - News - Moneyfacts


Repossession numbers fell by a quarter in 2010

Repossession numbers fell by a quarter in 2010

Category: Mortgages

Updated: 10/02/2011
First Published: 10/02/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The number of repossessions in the UK fell by almost a quarter (24%) in 2010, while the number of people falling into arrears also dropped.

Figures from the Council of Mortgage Lenders (CML) show that 36,300 repossessions were made last year, accounting for just 0.3% of all mortgages.

During the last three months of the year, the number of repossessions was 7,900, down 11% from 8,900 in the third quarter, and a fall of 26% on the 10,700 in the same period a year ago.

It was the fifth quarter in a row that the number of people losing their homes because they couldn't keep up with repayments fell.

The number of mortgages ending 2010 with arrears of 2.5% or more of the outstanding balance also fell by 13% on the previous year-end, standing at 169,600.

Just 1.49% of all mortgages in the UK ended 2010 with 2.5% or more of arrears – the lowest share since the third quarter of 2008 (1.29%).

It compares with 176,100 (1.55%) arrears cases at the end of September, and 196,000 (1.72%) at the end of 2009.

The CML said the latest data was broadly in line with its latest forecast.

For 2011, the body has predicted 40,000 repossessions and 180,000 mortgages in arrears, although figures could be affected if and when a rise in interest rates is implemented.

"As we go through 2011, the number of people facing payment pressures may increase if interest rates rise, and as a result of the spending cuts that have resulted in reductions in the level of public support available," said CML director general, Michael Coogan.

"We will be monitoring developments closely, but at present we continue to expect the number of arrears and repossessions to be in line with our forecasts of 40,000 repossessions and 180,000 arrears cases as at the end of 2011."

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