Repossessions fall but caution still advised
17 August 2009
The amount of British homes being repossessed declined in the second quarter of 2009, compared with the first three months.
According to new data released by the Council of Mortgage Lenders (CML) 11,400 homes were repossessed during the period, which represents a fall from the 12,700 that were lost during quarter one of the year.
Despite this, Ian Boden-Smyth, money advice coordinator for the UK Insolvency Helpline, asserted that low interest rates are enabling people to stay in their homes but erred towards caution for the coming months.
He said: "There has been a drop [in repossessions] this quarter, but don''t hold your breath because we could see a bit of an increase early next year, especially if the interest rates go up. We are very pleased that the figures have dropped.
"We are expecting to see more repossessions later on this year and most likely in a year''s time, but that''s just the way of the world. At the moment, things are looking good."
Mortgage broker John Charcol recently revealed that two million UK homes are in either negative equity or have less than ten per cent.
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