12,800 repossessions in three months
12,800 homes repossessed in first three months of 2009, Council of Mortgage Lenders says
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Friday, 15, May 2009 11:09
More than 12,800 homes were repossessed in the first three months of 2009, new figures have shown.
The Council of Mortgage Lenders (CML) said the number of repossessions was up 23 per cent on the previous quarter and 50 per cent compared to the same period last year.
According to CML forecasts 75,000 homes will be repossessed in 2009.
The figures also show that the number of buy-to-let mortgages in arrears rose by 70 per cent in the last year, with repossessions up 88 per cent.
At the end of the first quarter of 2009, 3.09 per cent of all buy-to-let mortgages were at least three months in arrears – compared to 0.92 per cent a year ago.
However, the CML warns low interest rates reducing repayments skew the figures.
In terms of the total mortgage balance the CML claims the number of buy-to-let mortgages in arrears actually fell.
CML director general Michael Coogan said: "It is not surprising that buy-to-let lending continued to fall in the first quarter. Many buy-to-let lenders relied on wholesale markets rather than retail savings to fund their lending.
"Some have therefore had no access to the measures to support capital and new lending that have been available to deposit-takers. This, along with general housing market weakness, has influenced the decline in buy-to-let lending."