MORTGAGE REPOSSESSIONS will be 80% higher in 2013 than 2005, according to the Council of Mortgage Lenders.
Forecasts published yesterday say 18,000 properties will be taken into possession this year, up from 10,310, meaning that the number of people losing their homes accelerated in the second half of the year. However, the annual total is still well below the levels seen in the 1990s.
The CML says:
‘The number of possessions has risen more sharply than the number of longer-term arrears. Lenders appear to be taking firmer action in these long-term cases, possibly reflecting the limits to forbearance where earlier problems cannot be resolved, and this process may have further to go. The increase also appears to reflect the growing proportion of specialist lending where arrears and possession rates tend to be higher because borrowers are higher risk, for example people with past debt problems.’
Separate research published yesterday by Macmillan Cancer Support suggests that cancer patients are at particular risk. A poll conducted by the charity said 6% of people lose their home after being and 18% face problems keeping up with mortgage payments.
The CML is forecasting that house prices will rise 7% in 2014 (double the rate it expected six months ago) and 5% in 2015 despite factoring in another 0.25% rise in interest rates next year.