Repossession claims rise by 16% in England and Wales
- added May 11, 2008
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The number of homeowners in England and Wales threatened with repossession has risen by 16% over the past year, official figures showed today.
The Ministry of Justice said 38,688 mortgage possession claims were made in the first quarter of the year, 7% more than in the last quarter of 2007 and 16% higher than in the same period last year.
Mortgage possession orders were up 17% year-on-year, and 7% higher than the last quarter, at 27,530.
The claims are made by mortgage lenders and local authorities in England and Wales when a homeowner falls behind on payments for a property.
The action is followed by a court order by a judge, which entitles the claimant to apply for a warrant for possession.
However, many of the orders will not end in repossession as an alternative arrangement can often be reached by the borrower and lender, and possession proceedings will be stopped.
In the first quarter of 2008, 47% of orders granted were suspended, allowing the borrower time to catch up with mortgage repayments and avoid repossession.
Commentators are expecting a sharp rise in the number of repossessions this year as higher living costs put a squeeze on household budgets. Higher mortgage costs are also set to hit around 1.4 million borrowers coming to the end of cheap fixed-rate deals, which could push some into financial difficulties.
As a result, the Council of Mortgage Lenders has suggested repossession figures are likely to jump from 27,100 last year to 45,000 in 2008.
It will not publish its next set of figures until early August, but it has said repossessions are running in line with its expectations.
The Ministry of Justice said 38,688 mortgage possession claims were made in the first quarter of the year, 7% more than in the last quarter of 2007 and 16% higher than in the same period last year.
Mortgage possession orders were up 17% year-on-year, and 7% higher than the last quarter, at 27,530.
The claims are made by mortgage lenders and local authorities in England and Wales when a homeowner falls behind on payments for a property.
The action is followed by a court order by a judge, which entitles the claimant to apply for a warrant for possession.
However, many of the orders will not end in repossession as an alternative arrangement can often be reached by the borrower and lender, and possession proceedings will be stopped.
In the first quarter of 2008, 47% of orders granted were suspended, allowing the borrower time to catch up with mortgage repayments and avoid repossession.
Commentators are expecting a sharp rise in the number of repossessions this year as higher living costs put a squeeze on household budgets. Higher mortgage costs are also set to hit around 1.4 million borrowers coming to the end of cheap fixed-rate deals, which could push some into financial difficulties.
As a result, the Council of Mortgage Lenders has suggested repossession figures are likely to jump from 27,100 last year to 45,000 in 2008.
It will not publish its next set of figures until early August, but it has said repossessions are running in line with its expectations.
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wow.. amazing... glad that can only happen in the UK and not in smarter places like the USA....
don't you read the news? :)
now here's something you won't do over there any more than the idea is catching on here, though your government might be more willing to shove it down the throats of lenders than ours is.....
don't foreclose, just extend the mortgages' length until the monthly payment drops down to an affordable level.
http://www.plusaf.com/soapbox/mortgage-crisis.htm
impossible? no. improbable? ask your legislators.
cry about it? stupid.
ps... 05.12.2008@2320hrs... from the Jason Kelly financial newsletter http://www.jasonkelly.com/#2369088021297029985 :
"As for our buying of financial stocks at the "very bottom," it's somewhat true. We researched exhaustively to find what we thought was the best one of the big banks and brokerages, but couldn't find anything really compelling to differentiate one from the other. Unlike Jim Cramer, we did not find Bear Stearns to be attractive.
Ultimately, we decided that buying the whole sector with leverage to get twice the bang out of a recovery was the way to go. We never believed the crap about subprime and credit concerns spelling the end of the financial system as we know it. (Surely you didn't fall for that!) Anybody who's studied the market for a while knows that financial stocks get a washout about once a decade, it's always called the end but it never is, and those who buy at the point of maximum pessimism do very well in the recovery. Think back to the S&L Crisis of 1990, the Asian contagion of 1997, and the collapse of Long-Term Capital Management in 1998. They were all supposed to be the end, none were, and we knew without a doubt that this time wasn't the end, either."
the media want to excite, tittilate or scare you, or all three at once.
you're a sucker if you believe them at face value without doing any research on your own...
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