Fewer people are being hit by repossession (From Swindon Advertiser)

Fewer people are being hit by repossession

2:10pm Friday 13th November 2009

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THE threat of repossession is hitting fewer households in Swindon as families continue to benefit from low interest rates and early financial advice.

Figures published yesterday by the Ministry Of Justice reveal that 115 possession orders were made by county courts against home owners in the town in the three months to the end of September – down 10 per cent from the same three-month period last year.

In the rest of Wiltshire, 95 families were subject to possession orders in the latest quarter – down 15 per cent year-on-year.

Possession orders, made against people for failing to keep up with their mortgage payments, do not necessarily lead to eviction because homeowners are given a final chance to negotiate an agreement with their lenders.

Across England and Wales the number of possession orders made against home owners in the third quarter fell by 29 per cent to 20,917 year-on-year.

Separate figures from the Council of Mortgage Lenders show nationally 11,700 families lost their homes over the past three months – a three per cent increase on the previous quarter but about eight per cent fewer than the first three months of the year.

The CML revised down its forecast on the numbers of repossessions expected this year from 65,000 to 48,000 – in recognition of a greater willingness among lenders to hold off from repossession, Government measures to help those in arrears get back on track, including free court advice, and the beneficial effect of continuing low interest rates.

Housing Minister John Healey said: “In the early 1990s, the Tories left families to sink or swim as the recession took its course.

“Repossessions, arrears and negative equity reached double their current level.

“We have put support for homeowners at the heart of our response to the economic downturn.

“We have tightened the rules so repossession is always the last resort for lenders. Over 300,000 homeowners have got help and advice with their mortgage since April 2008.

“Yet the Tories haven’t learnt anything from their past mistakes – they are dismissive of Labour’s help with mortgage payments and propose cuts that would hinder economic recovery.

“The Tory approach would lead to a longer and deeper recession, with more people at risk of losing their jobs and their homes, just like in the early ‘90s.”

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