08 Feb, 2008
Tanya Powley - 08-Feb-2008
Hometrack has called for more data to be
published on arrears and possessions by lender type and by broad
Risk and economics director Gary Styles says that rising arrears in
higher risk sectors could distort the perceived overall picture for
mortgage lending and the housing market in the UK.
"Lenders who concentrate on the prime lending market
experience significantly lower levels of arrears and repossessions
than for the market as a whole."
This comes as the Council of Mortgage Lenders says that
repossessions in 2007 totalled 27,100, 10 per cent lower than it
had previously forecasted.
Styles adds: "Mortgage arrears continue to rise with 3 month
plus arrears reaching 1.1 per cent of all loans up from 1.05 per
cent in the first half of last year and 1.02 per cent at the end of
2006. Arrears remain very subdued compared to the last major
housing slowdown when they reached over 6-7 times this level in
"However, the actual number of mortgages 3 months or more in
arrears has risen to 129,800 and those in the more serious 6 month
category has reached 56,800. The subdued data on possessions are
very welcome but the deteriorating arrears position will inevitably
result in higher repossessions during 2008."