The Council Of Mortgage Lenders (CML) has stated that the number of homes repossessed in the UK rose 54% last year to a figure of 40,000 according to a report by the BBC. As dire as that sounds it is not as high as they had predicted.
The lower than expected figure is a credit to the strenuous efforts being made by lenders to make sure repossessions were the last thing on their agenda according to the CML.
They do, however, expect this figure to continue to rise with a predicted 75,000 repossessions this year. They urge homeowners to investigate the possibilities before they take the drastic step of handing in their keys.
“We strongly urge borrowers to contact their lender and work with them before taking this step, as there may be other solutions,” said the CML’s director general Michael Coogan.
“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,” he added.
It seems this is strong advice because figures released by the Ministry of Justice shows that government recommendations that make sure lenders give homeowners some breathing space has started to take effect.
The ministry figures show that fewer lenders are taking that first step of applying through the courts for permission to take the property back. Whether this is a permanent fall or simply a delay remains to be seen.
