Fewer people see homes repossessed
The number of people who lost their homes fell by 9 per cent during the second quarter of the year, figures showed today.
A total of 13,610 properties were repossessed during the three months to the end of June, nearly 1,300 fewer than during the previous quarter but still 23 per cent higher than for the same period of 2008, according to the Financial Services Authority.
The group said the sharply rising trend in repossessions that had been evident up to the third quarter of last year had stabilised during the past nine months.
The FSA said the fall in repossessions was likely to be due to the introduction of the pre-action protocol in November last year, under which courts can only grant a repossession order if all other measures to keep someone in their home have failed.
The Government has also launched a raft of initiatives to help people who are struggling with their mortgage, while lenders are showing greater forbearance and low interest rates are helping to keep repayments more affordable.
The regulator also reported a fall in the number of people falling behind with their mortgage payments, with 51,000 homeowners getting into arrears of 1.5 per cent or more of their outstanding mortgage during the second quarter, 14 per cent fewer than in the previous three months.
But borrowers who do get into arrears are struggling to clear their debt, with a total 403,000 people owing arrears to their lender, 30 per cent more than a year ago and a figure that has been steadily rising since early 2007.
However, the number of repossessed properties that lenders are able to sell more than doubled during the three months, compared with the same period of 2008, rising to 15,804, up from 6,987, most likely on the back of the improving housing market.
Today's figures are broadly in line with ones published by the Council of Mortgage Lenders for the same period, which showed a 10 per cent fall in repossessions to 11,400, although it reported a modest increase in the number of people who were in arrears.
The difference in the figures is due to the fact that the FSA data includes all lenders, including those offering second charge mortgages, while the CML only publishes figures on first charge loans advanced by its members.
The FSA's figures also highlighted continuing problems in the mortgage market.
Net advances, which strip out redemptions and repayments, totalled just over £5bn during the quarter, around £3bn higher than during the previous three months, but still 75 per cent lower than the same period of 2008.
The low level of new lending, combined with higher repayments due to low interest rates, meant the total value of outstanding mortgage debt edged ahead by 1 per cent year-on-year to £1.2trn.
There continued to be a fall in the amount of lending done to people borrowing more than 90 per cent of their home's value, with this dropping from a peak of 15 per cent of advances in early 2007, before the credit crunch struck, to less than 3 per cent during the second quarter.
Less than 2 per cent of mortgages were advanced to people borrowing both more than 90 per cent of their home's value and a high income multiple.
The market for mortgages for people with impaired credit histories also continued to contract during the period, accounting for only 0.4 per cent of all lending, down from 3.5 per cent during the first nine months of 2007.
Responding to the FSA's figures, Housing Minister John Healey said: "The comprehensive range of support the Government has put in place at every stage of the process has helped over 300,000 families.
"We also continue to work with lenders to ensure they show greater tolerance and understanding to those in mortgage arrears so that repossession remains the last resort."
Independent Partners: Get fee-free expert mortgage advice and find the right mortgage deal for you.
Returning to the stage after 20 years makes actress feel 'nauseous'
Top conservatoire offers ‘groundbreaking’ arts degree
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 Watch a man race the Circle line - and win
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Grandmas keep accidentally tagging themselves as Grandmaster Flash on Facebook
- 5 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
Portuguese academic says British are 'filthy, violent and drunk'
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
iJobs Money & Business
£20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
Day In a Page
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens
A seven-bedroom Grade II-listed property with a separate self-contained apartment
A five-bedroom Victorian house with three reception rooms and galleried landing, £695,000
A six-bedroom farmhouse with five acres of land in a former cloth-making village
A secluded seven-bedroom detached house with large private garden, £490,000
A three-bedroom cottage overlooking Sarratt village green with open fires and solid oak floors
A three-bedroom maisonette flat in a Grade I-listed, Georgian townhouse in a sought-after location
A one-bedroom apartment located within a private gated development, north of Turnham Green
Look forward to a brighter future at two-bedroom Sunny Cottages, ideal for Londoners looking to downsize
A three-bedroom red-brick cottage with outbuildings and pretty gardens, £200,000
This three-bedroom flat within a former textile factory spans the corner of the fourth floor and has a balcony