Financial outsourcer HML predicts that 0.3% of all mortgaged houses will be repossessed this year.
During the first six months of the year, it expects 15,557 homes to be repossessed increasing to 17,700 during the send half.
The worst rate of repossessions is expected to be in Northern Ireland at 0.83% whilst the lowest rate will be in the South West at 0.18%. Above average rates are likely to occur in London, the North East, the West Midlands and Wales.
Neil Warman from HML explained that last year’s downward trend will continue for the first six months of 2011 but, as macroeconomic factors impact householders and mortgage lending behaviour changes, repossessions will start to rise in the final six months.
This year, hard-pressed homeowners will be hit by rising inflation and increasing job losses. However, the impact of these will not filter through immediately.
Looking forward to next year, it would appear that repossessions will continue to increase slightly; probably to between 35,000 and 40,000.
HML obtains its information from 320,000 live mortgage accounts and is believed to be the most comprehensive set of forecasts available. The figures take into consideration the amount of people included in a contractor mortgage, other debts, existing credit facilities and recent repayment history.
Meanwhile, Taylor Wimpey has announced a new 95% LTV mortgage for first time buyers. The Take5 mortgage is a two year fixed rate deal in conjunction with the Melton Mowbray and Saffron Building Societies. The mortgage will be available on selected properties in East Anglia, East London and the East Midlands.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.
