Possessions and arrears ‘will increase’
The number of house possessions and arrears are set to increase this year, although the reality of the situation may not be as bad as some predictions suggest, the Council of Mortgage Lenders (CML) has said.
According to the CML, arrears and possessions will rise to 170,000 by the end of 2008, up from 129,800 in 2007.
Bernard Clarke, spokesperson for the CML, has said the trend is "not surprising" due to "market circumstances".
However, Mr Clarke suggested that figures will not dip as low as they did in the 1990s.
He stated that now "we have lower and more stable borrowing costs" than a decade a go and "although we have revised downwards our expectations for house price growth, we are still not likely to see a price correction of the magnitude that we saw in the 1990s".
In 1992, 2.07 per cent of mortgage payments were between six months and a year in arrears, the CML has revealed.
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