CML Revised Figures on Home Repossessions
Council of Mortgage Lenders (CML) forecast fewer homes being repossessed for this year – as emerged last week (22nd June, 2009) – due to the historically low interest rate set by the Bank of England (BoE) in March.
CML (Council of Mortgage Lenders) revised and reported its latest forecast on home repossessions last week – 22nd June 2009 – with an estimation of 65,000 repossessions this year compared to 75,000 homes lost resulted in the previous prediction. Net lending has also reported a decrease by £5 billion in comparison to £25 billions in the previous forecast.
Even though the rate on repossessions is starting to ease, the latest prediction is still showing the highest figure for home loss since 1992 – while it is also nearly two-third higher than the 40,000 records of people who got repossessed in 2008. Other than that, forecast illustrated that about 360,000 mortgage holders would be in arrears by the end of 2009 – which is equivalent to 2.5% of the total mortgage borrowers.
The revision of the forecast is mainly due to the lower interest rates of 0.5% set by the Bank of England (BoE) since March as well as more Government regulations were established to help people who are in arrears.
Since the economy is still in a weak situation, critics analysed that it is still too early to predict and indicate the recovery on the housing market; thus, they predicted that the housing transaction is likely to remain quiet for a while.