75,000 set to lose their homes

Around 75,000 people will have their homes repossessed during 2009 and the number of people unable to keep up with their mortgage repayments will more than double, the Council of Mortgage Lenders predicted today.

The group expects a 67 per cent surge in the number of people who lose their home during the year, up from an estimated 45,000 for this year.

It also expects around 500,000 people to fall at least three months behind with their mortgage repayments, compared with 210,000 in 2008.









The Council of Mortgage Lenders (CML) warned that despite the work the Government and industry were doing, 2009 was going to be a "very tough year" for the UK mortgage market.



It expects net lending to turn negative for the first year since records began in 1964, meaning that consumers will repay more on their mortgages than they borrow.



Net lending, which strips out repayments and remortgaging, is expected to dive to minus £25bn, as new lending fails to keep up with repayments.



The figure is well down on net lending of £40bn for 2008 and £108bn in 2007, a level that the Government has urged the industry to replicate next year.



Total advances are also expected to be considerably lower at £145bn in 2009, down from around £258bn this year and less than half the £363bn advanced in 2007.



The group said a significant number of the properties that were repossessed were likely to be cases where the home had been abandoned by its owners or the property had been used in a fraud.



A sizeable proportion of the cases are also expected to be buy-to-let properties.



But it added that even though lenders had committed to working with homeowners to help them avoid losing their homes, the worsening economic backdrop pointed to an "inevitable increase" in the number of cases where a sustainable alternative solution could not be found.



The prediction of 75,000 repossessions, which will represent 0.66 per cent of all mortgages, is the same as the one given to ministers earlier this month before the Government announced its new Homeowner Mortgage Support Scheme, under which people can defer paying interest on their mortgage for up to two years.



The CML said schemes such as this one, as well as the greater forbearance being shown by lenders, would contribute to the steep jump in the number of people in mortgage arrears.



It expects the proportion of people who are in arrears of at least three months to soar to 4.41 per cent of all mortgages from an estimated 1.8 per cent this year.



The forecast came as the CML reported that total mortgage advances during November had sunk to just £14.6bn, the lowest level since February 2002.



The figure was 22 per cent lower than in October and 51 per cent below the level for November last year.



The group said that while there was typically a decline in lending levels between October and November, the fall was "considerably larger" than usual, which it said reflected the current market disruption and the continued deterioration of confidence in the economy.









Unsurprisingly, given the problems in the mortgage market, the CML expects activity in the housing market to remain "extremely subdued" next year, with only around 700,000 homes changing hands, down from 900,000 this year and 1.6 million in 2007.



CML director general Michael Coogan said: "In looking ahead to the coming year, the housing market will remain extremely subdued and net mortgage lending is likely to turn negative.



"Repayment problems will worsen against the backdrop of rising unemployment but lenders and Government are working to try to reduce the negative impact on borrowers.



"Recent glimmers of light in terms of Government intervention to improve conditions to support new lending are helpful, but more will be needed."



The group stressed that forecasting in the current climate was extremely challenging, and it has abandoned its usual house price prediction for next year.



It added that the predictions it had made represented a "best estimate of direction of travel", rather than a precise analysis.

News
A Brazilian wandering spider
news

World's most lethal spider found under a bunch of bananas

News
people
Sport
Mario Balotelli pictured in the win over QPR
footballInternet reacts to miss shocker for Liverpool striker
Voices
Sol Campbell near his home in Chelsea
voices
PROMOTED VIDEO
News
i100
News
Kimi the fox cub
newsBurberry under fire from animal rights group - and their star, Kimi
Sport
Fans of Palmeiras looks dejected during the match between Palmeiras and Santos
footballPalmeiras fan killed trying to 'ambush' bus full of opposition supporters
Arts and Entertainment
filmsIt's nearly a wrap on Star Wars: Episode 7, producer reveals
Life and Style
fashion
News
i100
News
<p>Jonathan Ross</p>
<p>Jonathan Ross (or Wossy, as he’s affectionately known) has been on television and radio for an extraordinarily long time, working on a seat in the pantheon of British presenters. Hosting Friday Night with Jonathan Ross for nine years, Ross has been in everything from the video game Fable to Phineas and Ferb. So it’s probably not so surprising that Ross studied at Southampton College of Art (since rebranded Southampton Solent), a university known nowadays for its media production courses.</p>
<p>However, after leaving Solent, Ross studied History at the School of Slavonic and East European Studies, now part of the UCL, a move that was somewhat out of keeping with the rest of his career. Ross was made a fellow of the school in 2006 in recognition of his services to broadcasting.</p>
TV

Rumours that the star wants to move on to pastures new

News
i100
Arts and Entertainment
The cast of Downton Abbey indulge in some racing at a Point to Point
tvNew pictures promise a day at the races and a loved-up Lady Rose
News
people

Comedian says he 'never laughed as hard as I have writing with Rik'

Arts and Entertainment
Tim Wonnacott dancing the pasadoble
TVStrictly Come Dancing The Result
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Operational Risk Manager - Asset Management

    £60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...

    Project Coordinator - 12 month contract

    £27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...

    IT Operations Manager - London - £55,000

    £50000 - £55000 per annum + bonus + benefits: Ashdown Group: IT Relationship M...

    Banking Solicitor NQ+

    Highly Attractive Salary : Austen Lloyd: NOTTINGHAM - BRILLIANT FIRM - You wil...

    Day In a Page

    Oscar Pistorius sentencing: The athlete's wealth and notoriety have provoked a long overdue debate on South African prisons

    'They poured water on, then electrified me...'

    If Oscar Pistorius is sent to jail, his experience will not be that of other inmates
    James Wharton: The former Guard now fighting discrimination against gay soldiers

    The former Guard now fighting discrimination against gay soldiers

    Life after the Army has brought new battles for the LGBT activist James Wharton
    Ebola in the US: Panic over the virus threatens to infect President Obama's midterms

    Panic over Ebola threatens to infect the midterms

    Just one person has died, yet November's elections may be affected by what Republicans call 'Obama's Katrina', says Rupert Cornwell
    Premier League coaches join the RSC to swap the tricks of their trades

    Darling, you were fabulous! But offside...

    Premier League coaches are joining the RSC to learn acting skills, and in turn they will teach its actors to play football. Nick Clark finds out why
    How to dress with authority: Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear

    How to dress with authority

    Kirsty Wark and Camila Batmanghelidjh discuss the changing role of fashion in women's workwear
    New book on Joy Division's Ian Curtis sheds new light on the life of the late singer

    New book on Ian Curtis sheds fresh light on the life of the late singer

    'Joy Division were making art... Ian was for real' says author Jon Savage
    Sean Harris: A rare interview with British acting's secret weapon

    Sean Harris: A rare interview with British acting's secret weapon

    The Bafta-winner talks Hollywood, being branded a psycho, and how Barbra Streisand is his true inspiration
    Tim Minchin, interview: The musician, comedian and world's favourite ginger is on scorching form

    Tim Minchin interview

    For a no-holds-barred comedian who is scathing about woolly thinking and oppressive religiosity, he is surprisingly gentle in person
    Boris Johnson's boozing won't win the puritan vote

    Boris's boozing won't win the puritan vote

    Many of us Brits still disapprove of conspicuous consumption – it's the way we were raised, says DJ Taylor
    Ash frontman Tim Wheeler reveals how he came to terms with his father's dementia

    Tim Wheeler: Alzheimer's, memories and my dad

    Wheeler's dad suffered from Alzheimer's for three years. When he died, there was only one way the Ash frontman knew how to respond: with a heartfelt solo album
    Hugh Bonneville & Peter James: 'Peter loves his classic cars; I've always pootled along fine with a Mini Metro. I think I lack his panache'

    How We Met: Hugh Bonneville & Peter James

    'Peter loves his classic cars; I've always pootled along fine with a Mini Metro. I think I lack his panache'
    Bill Granger recipes: Our chef's heavenly crab dishes don't need hours of preparation

    Bill Granger's heavenly crab recipes

    Scared off by the strain of shelling a crab? Let a fishmonger do the hard work so you can focus on getting the flavours right
    Radamel Falcao: How faith and love drive the Colombian to glory

    Radamel Falcao: How faith and love drive the Colombian to glory

    After a remarkable conversion from reckless defender to prolific striker, Monaco's ace says he wants to make his loan deal at Old Trafford permanent
    Terry Venables: Premier League managers must not be allowed to dictate who plays and who does not play for England

    Terry Venables column

    Premier League managers must not be allowed to dictate who plays and who does not play for England
    The Inside Word: Brendan Rodgers looks to the future while Roy Hodgson is ghost of seasons past

    Michael Calvin's Inside Word

    Brendan Rodgers looks to the future while Roy Hodgson is ghost of seasons past