UK Repossessions Falling

Home repossessions in the United Kingdom has finally started to fall compared with previous quarters which is a sign that low interest rates are finally starting to have an effect on lenders and homeowners.

The Council of Mortgage Lenders (CML) recently announced that over 11,400 were repossessed had in the past three months, which is a drop of over 10% compared with the previous financial quarter.  Whilst this is good news, in perspective repossessions are still up 14% higher than the previous year.

With unemployment still a major issue, the CML has said that if joblessness continues to rise, more homeowners could be in trouble if lenders do not try to be more tolerant in the current economic crisis.

Thankfully, because of reduced interest rates, more and more householders are finding it easier to keep up-to-date with their mortgage payments.  This has helped to save many families from the threat of repossession, but as unemployment continues to rise, many are still under threat.

Government schemes introduced to try and help people to keep their homes were ineffective and dismissed by independent financial advisors, and whilst these mortgage rescue schemes are welcome, up to date, they have only helped some 190 families keep their homes.

The main reason for the lack of effectiveness is due to inadequate funding and also a lack of awareness, even though these schemes have a potential to help over 6,000 families in England alone.

The advice from lenders and the Government alike is to negotiate with lenders in advance in order to minimize the risks of repossession and to work out an appropriate solution for both parties.

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