UK repossessions up 50% in a year

[GrandOldTeam]

Shocking this. Anyone ever been in this kind of situation?

The number of homes repossessed in the UK rose to 12,800 in the first three months of the year, the Council of Mortgage Lenders (CML) has said.
This was up 23% from the 10,400 in the previous three months and 50% up on the 8,500 in the same period last year.
The CML has predicted that 75,000 homes will be repossessed in 2009, almost double the 40,000 of last year.
But the group has now described this prediction as "pessimistic" and could change its view in the summer.
The number of home loans with arrears of more than 2.5% of the mortgage balance rose by 12% from 182,600 in the fourth quarter of 2008 to 205,300 in the first three months of this year, the CML said.
This was 62% up on the 127,000 in the first quarter of 2008.
The figures were described as "pretty ugly" by Chris Tapp, director of debt charity Credit Action.

Lenders have come under increasing pressure to help out borrowers in trouble.
There is help available for people in danger of losing their homes. Tracey Myers nearly lost her home a few years ago.
"It was awful. I wouldn't want anyone to go through it. There is no way out - no matter how much you show people you are trying to sort things out, they just want their piece back," she told the BBC's Propertywatch programme.
"I resigned myself to the fact it was going to be repossessed. I waited for the knock on the door. I had everything packed - I lived in a shell so at least if they came to evict me, I could get everything out. It was just a waiting game."
But, helped by the Scottish Mortgage Rescue Scheme - she managed to keep her home. A similar scheme in England offers people the chance to sell some or all of their home and rent it back from a social landlord.
A separate UK-wide scheme allows people who have temporarily lost their income to defer a proportion of their mortgage interest payments for up to two years.
Lender help
In November, the large lenders agreed to a minimum three-month delay before starting repossession proceedings. Many said this was standard industry practice.
In October, lenders were told that in order to gain court permission for a repossession, they would have to show they had tried to discuss and agree alternative arrangements with borrowers. These alternatives could include a full or partial repayment holiday, changing the type of mortgage or extending the repayment term.
Lenders are keen to assist anyone who got into difficulties with repaying their mortgage, Michael Coogan, the CML's director general said.
"Lenders are acutely conscious that behind the statistics are real people, many of whom are affected by the economic downturn and its impacts on unemployment, changes in circumstances and inability to refinance," he said.
"While initiatives such as mortgage rescue and the home-owner mortgage support scheme are not appropriate for everyone, they have encouraged more borrowers to discuss their options with lenders and money advisers, which is helpful," said Mr Coogan.

 

[Reidy's Bottle Of Grecian]

had to secure a couple of properties after evictions, but usually rentals. the repo market is growing and i wouldnt mind a few of those jobs.

i predict there will be quite a few on my estate as i see people who have to have everything whether they can afford it or not, also people who wouldnt usually lose their jobs are now finding that they are not immune, very often they also live beyond their means and their larger salaries have just meant they could be hocked up even more, and as they haven't had to watch their money they have just been spend spend spend

e.g. a friend has just moved house and the oven has never been used in 6 years, they eat takeaway every night of the week or go for a chinese etc. they also go the pub quite a lot and his mrs "does lunch" about 4 days a week, they spend more on takeaways and ale in a week than we are living off. he earns a fair whack but looking what they spend i doubt if they would last long should his job go to the wall.

 

[Nebbiolo]

It's happening over here as well. You've got have sympathy for people that go through that. It must be hell. A home belongs to the banl until you've paid for it, but it feels solely yours. To have someone come in and kick you out would be soul destroying.

Greedy financial institutions to blame?

 

[Whitebootman]

Came close in the late 80's when interest rates hit the roof, at one point all my wages and almost 25% of my wife's wages went on the mortgage payment. I had to literally make our bed when the old one we had wore out, it was cheaper to buy the wood from Wicks and build a simple bedframe and just buy a cheap matress than buy a bed from the shops. We didn't even overstretch when we applied for the mortgage, did not include overtime or bonus income on the application.

Mad times, next door did the whole 'must have everything now' thing and were repossessed within 12 months. Be careful out there.

 

[Whitebootman]

It's happening over here as well. You've got have sympathy for people that go through that. It must be hell. A home belongs to the banl until you've paid for it, but it feels solely yours. To have someone come in and kick you out would be soul destroying.

Greedy financial institutions to blame?QUOTE]

In some cases greed, on both sides, is to blame sometimes it is just bad luck. Hard either way. Times like these need some common sense from all parties.

 

[bobbyrob]

Being a tight arse has its advantages

 

[Blue_in_london]

Came close in the late 80's when interest rates hit the roof, at one point all my wages and almost 25% of my wife's wages went on the mortgage payment. I had to literally make our bed when the old one we had wore out, it was cheaper to buy the wood from Wicks and build a simple bedframe and just buy a cheap matress than buy a bed from the shops. We didn't even overstretch when we applied for the mortgage, did not include overtime or bonus income on the application.

Mad times, next door did the whole 'must have everything now' thing and were repossessed within 12 months. Be careful out there.

How often did you wear the bed out!!!??

 

[Whitebootman]

How often did you wear the bed out!!!??

Just married.

 

[GhostOfDixie]

Credit Crunch? It's all about managing your finances from an early stage in your adult life. If you live in credit for so long, and then when it's taken away of course you are going to be on your arse.

 

[little curly alan ball]

Telling ya !!! Please see my post on Beggars thread .
This is fukn happening , folks .