The CML’s figures show there were:
• 5,000 fewer repossessions than forecast in 2008
• 40,000 repossessions in the year - 1 in 290 mortgages
• 10,400 repossessions in the fourth quarter - 1 in 1,100 mortgages
• 1 in 64 mortgages in arrears of 2.5% or more
• 1 in 53 mortgages in arrears of three months or more (inflated by lower interest rates)
• 75,000 repossessions forecast for 2009 remains unchanged
The fact that there were 11% fewer repossessions than expected, despite a worsening economy and rising unemployment, demonstrates that mortgage lenders are making strenuous efforts to ensure that repossession really is a last resort, according to the CML. It is important to recognise that repossessions include a proportion of abandoned properties and property fraud. They also include buy-to-let repossessions, as well as home-owner repossessions. In the vast majority of cases where home-owners are committed to working with their lender to keep their home, this outcome is successfully achieved.
CML director general Michael Coogan commented: "Despite the upward pressure on mortgage arrears and repossessions arising from the problems in the economy and rising unemployment, both lenders and government are continuing to find more ways to help more people stay in their homes.
"But there seems to be a sharp rise in cases where borrowers are handing back their keys or abandoning their properties. We strongly urge borrowers to contact their lender and work with them before taking this step, as there may be other solutions. Borrowers are still liable for their debt, even if they leave the property, so working through their problems is much more likely to be in their best interests.
"We know the plethora of schemes and initiatives is daunting, and we are working closely with government and advice agencies to try to simplify the information available, and ensure that those borrowers who may qualify for help get access to the information and advice that they need at the right time."
