Repossession rates down

The Financial Services Authority (FSA) has reported a fall in repossessions. According to the FSA, repossessions fell in the April to June period to a level not seen since the beginning of 2008.

Lenders seized 9,978 properties in the quarterly period – a fall of 5 per cent compared with the January to March period. Analysts believe many homeowners have been saved from repossession, due to historically low interest rates, which have driven monthly mortgage repayments down.

In the meantime, the number of mortgages in arrears also dropped, said the FSA. Around 37,000 people fell into mortgage arrears in the period – 8 per cent less than the previous quarter.

The figures are in line with those from the Council of Mortgage Lenders (CML), who recently reported that 9,400 properties had been repossessed in the April to June period.

The fall led the CML to once again revise its forecast for 2010 repossessions, expecting a total of 39,000 repossessions for the year, compared with its previous estimate of 53,000.

The FSA figures are higher than the CML’s as they include second-charge mortgages and loans advanced by lenders who are not CML members.