Commenting on the Ministry of Justice mortgage possession figures which revealed that mortgage possession orders made in Q2 2008, were 24% higher than in the second quarter of 2007 and 4% higher than in the first quarter of 2008, he said:
“We’ve had three sets of arrears and possessions related figures in the last fortnight – and they all paint a slightly different picture. Despite the obvious confusion this creates, the FSA, CML and MOJ numbers all have one thing in common – more people are falling behind on their mortgage payments and more people are losing their homes. But, while arrears and possessions are clearly on the up – this is no mortgage meltdown akin to what we saw back in 1991.
“Normally a self-correction in the housing market feels like an elastoplast being peeled off very slowly. What we’ve seen over the last twelve months is a quick, sharp rip. That should mean recovery comes more quickly than it has in past housing slowdowns.
“As the Governor of the Bank of England said on Wednesday, though we’ll feel a period of pain, people will get through this. But the scale of that pain and its duration depends on two things. First, more mortgages must become available. Second, an equally important step is for lenders and government to help find ways of keeping people in their homes.
“To avoid possessions for those struggling with their finances because of unemployment or relationship breakdown, the next step is for the government to revamp the income support for mortgage interest scheme. Peoples’ homes are now at risk. It’s time for the Chancellor to show his mettle.”
