UK Repossession Figures
According to the Council of Mortgage Lenders (CML), outstanding mortgage debt now stands at £1,117 billion in the UK.
There has been a significant 1.
25 per cent rise in the Bank of England base rate in the last year, and younger home owners are likely to feel the squeeze as they move to new mortgage rates.
These home owners have a high ratio of debt to income, and may end up being part of the rising trend of repossessions in the UK.
Repossession figures have been on the rise for some time now, and the CML's latest half yearly figures reflect this trend.
In June 2007, there were 125,100 mortgages in arrears of three months or more.
This was a 4 per cent increase over the December 2006 figure, but down slightly over the previous year.
Most of those in arrears (71,800) were in arrears of three to six months.
However, there were 38,300 mortgage holders in arrears of 6-12 months and 15,000 who were in arrears of more than a year.
One per cent of all mortgages were in arrears during the period, much the same as in previous periods under review.
Repossession Increase However, despite the relative stability of the arrears figures, the number of properties repossessed in the first half of 2007 rose by almost 18 per cent over the previous six months to 14,000.
This represents a rise of about 30 per cent over the previous year, and equates to 1 in 840 mortgages ending in repossession, says the CML.
However, Citizens Advice suggests that lenders are moving more quickly towards repossession than they have done in the past.
The CML states that repossessions have increased more than arrears during the past two years, citing a number of possible causes for this trend.
These include an increase in loans to the sub prime market.
These are higher risk, and lenders are more likely to move to possession at an early stage in cases of arrears.
Another reason is that lenders are contacting defaulting borrowers quickly to reach payment arrangements and avoid falling further into arrears.
The CML has recently revised its data on arrears and repossession, and has not made any forecasts for the coming period.
However, the organisation has commented that sub prime markets are seeing higher levels of repossession than in the mainstream lending market, which is likely to have a high impact on future arrears and repossession figures.
There has been a significant 1.
25 per cent rise in the Bank of England base rate in the last year, and younger home owners are likely to feel the squeeze as they move to new mortgage rates.
These home owners have a high ratio of debt to income, and may end up being part of the rising trend of repossessions in the UK.
Repossession figures have been on the rise for some time now, and the CML's latest half yearly figures reflect this trend.
In June 2007, there were 125,100 mortgages in arrears of three months or more.
This was a 4 per cent increase over the December 2006 figure, but down slightly over the previous year.
Most of those in arrears (71,800) were in arrears of three to six months.
However, there were 38,300 mortgage holders in arrears of 6-12 months and 15,000 who were in arrears of more than a year.
One per cent of all mortgages were in arrears during the period, much the same as in previous periods under review.
Repossession Increase However, despite the relative stability of the arrears figures, the number of properties repossessed in the first half of 2007 rose by almost 18 per cent over the previous six months to 14,000.
This represents a rise of about 30 per cent over the previous year, and equates to 1 in 840 mortgages ending in repossession, says the CML.
However, Citizens Advice suggests that lenders are moving more quickly towards repossession than they have done in the past.
The CML states that repossessions have increased more than arrears during the past two years, citing a number of possible causes for this trend.
These include an increase in loans to the sub prime market.
These are higher risk, and lenders are more likely to move to possession at an early stage in cases of arrears.
Another reason is that lenders are contacting defaulting borrowers quickly to reach payment arrangements and avoid falling further into arrears.
The CML has recently revised its data on arrears and repossession, and has not made any forecasts for the coming period.
However, the organisation has commented that sub prime markets are seeing higher levels of repossession than in the mainstream lending market, which is likely to have a high impact on future arrears and repossession figures.
