The number of indebted homeowners forced to hand over their keys has reached a two-year low as repossession nightmares begin to lift, new research has revealed.
According to the Financial Services Authority, in the first quarter of 2010 a total of 10,500 homeowners had their property repossessed, 11% less than early 2009, while those falling behind on their mortgage payments also improved.
Approximately 40,500 people got into arrears during the first quarter, 2% fewer than during the previous three months. The fall contributed to a further improvement in the total number of people who were in mortgage arrears for the third consecutive quarter, with 362,000 behind on their payments, the equivalent of 3.23% of all mortgage holders.
Similarly positive figures from the Council of Mortgage Lenders (CML), published earlier this month, also show a distinct decline in repossessions and the numbers have bulked at post-recession fears of increased homeowner dangers.
Previously, the CML had forecast that 53,000 people would lose their homes this year, however, due to recent research, it has indicated this prediction now looks "pessimistic" and is likely to be revised.
But, while repossession figures look to be heading in the right direction, the reality is that thousands of homeowners still find the banks knocking at their door.
Andrew Leakey, consumer law partner at Stephensons Solicitors LLP, said: “It appears that banks are being patient for the moment. There is no guarantee this will continue in the future. It is easier to save your home if you seek advice early.”
If you feel your mortgage payments are mounting and you’ll struggle to maintain the family home over the coming months, independent advice can iron out many of the issues and fears currently plaguing homeowners.
By knowing your legal rights and discussing your predicament, you could avoid the dangers of repossession and cement your position as a homeowner.
