CML Repossession Forecast was too Pessimistic

The forecast for 2009 associated with the number of repossessions, which were predicted to reach 75,000, turned out to be too pessimistic, claims the Council of Mortgage Lenders (CML). Despite the fact that only 4 months of 2009 have passed, the CML said that the figures for the first quarter of 2009 demonstrate that the situation is not as gloomy as the organization had thought. The first quarter of 2009 was market by a total of 12,800 repossessions (including buy-to-let), conducted by first-charge lenders, compared with 8,500 repossessions in the 1st quarter of 2008. According to Michael Coogan, CML director general Michael, although the number of repossessions did increase, the increase was not as bad as the CML expected; the organization said it will revise its predictions in the next housing market forecast update. The figures published by The Ministry of Justice showed that 22,609 mortgage possession claims were issued in the first quarter of 2009, which is 42% less than in the 1st quarter of 2008. The amount of mortgage possession orders also decreased as 47% of orders were suspended. The figures suggest that the number of homeowners, struggling with mortgages, who end up in court, is reduced, which allows specialists to believe that actual repossession figures will fall in future. Also, Mr. Coogan said that the number of borrowers who end up in mortgage arrears is rising much faster than the number of repossessions. However, he added that lenders are willing to negotiate with borrowers who are committed to working with them. The figures on repossessions were also published by the Finance and Leasing Association (FLA) on Friday, May 15th. The figures reveal that many second-charge lenders are trying to avoid repossessions as they recognise the pressures that are forced upon homeowners. Stephen Sklaroff, director general at FLA claimed that the number of repossessions by second-charge lenders has remained almost flat compared to the same period last year.