The number of repossessions increased by 15% in Q1 2011 compared to Q4 2010, figures from the Council of Mortgage Lenders show.

• Of the 11.3 million outstanding first-charge mortgages in the UK at the end of March 2011, a total of 9,100 properties were taken into possession in Q1 2011, equating to 0.08% of all loans.
• This was 15% up from the 7,900 in Q4 2010, but 10% lower than the same period a year ago, and equal to the average quarterly number of repossessions throughout 2010.
• At the end of March 2011, the number of mortgages with arrears equivalent to 2.5% or more of the outstanding balance fell from 170,000 in Q4 2010,1.5% of all loans, to 166,900 and 1.47% of all loans in Q1 2011.
• Q1 2011’s figure represents an 11% improvement on the 187,300 and 1.65% of loans in Q1 2010.
• On this measure, Q1 2011 saw the lowest share of mortgages in arrears since the third quarter of 2008.
• The only arrears band to see an increase was for arrears of 10% or more. This band increased slightly in number, from 27,400 in Q4 2010 to 27,700, although the proportion of all loans was unchanged at 0.24%.

The CML says the increased regulatory emphasis on prudential issues, including the FSA’s concerns that excessive forbearance may be storing up future problems, needs to be balanced against the objective of minimising repossessions for both social and market related reasons.

Michael Coogan, director-general at the CML, says:

“In essence, good arrears management practice is a balance between giving households every chance to rehabilitate and get back on track, and limiting the damage in the minority of cases where this is not going to be achievable.”

He says that looking ahead, many households are likely to find their budgets stretched for some time, and some will inevitably find themselves in difficulty.

Coogan adds:

“Lenders have a range of options to nurse borrowers through temporary problems, but will clearly need to be mindful of the regulator’s concern that too much forbearance may be as bad as too little.”

Revival Repossession Solutions can help you to save your home and get you back on track with your mortgage payments without the need to sell or borrow more money at a high interest rate. Revival Repossession Solutions have helped many people keep their homes by negotiating with Mortgage Companies on our clients behalf.

It is imperative that you keep up with your Mortgage or Secured Loan payments. Your Mortgage is your top financial priority over and above any other unsecured debts, such as Store Cards, Credit Cards, Hire Purchase or Unsecured Loans. Being in Arrears with your Mortgage means that your home could be repossessed and the longer you leave it the higher the chance of having your home repossessed, or receiving a Court Date.

Dealing with Mortgage Arrears

Revival Repossession Solutions provide specialist expertise in dealing with Mortgage and Secured Loan Arrears. We carefully assess your financial circumstances and make a detailed account of your income and expenditure. We calculate how much you can pay to your unsecured debts and based on your disposable income we make a detailed proposal to the Mortgage Company to spread the arrears over a period of time whilst maintaining your usual monthly repayment.

We have had a great deal of success in reaching agreements on behalf of our clients and preventing court action or repossession action.

It is very important that you keep to the new arrangement which has been negotiated with your mortgage lender. If you break these terms then the repossession process could be started and it will be difficult to negotiate with your lender in the future.

Revival Repossession Solutions provide a fast, effective and professional service that can have you back on track in no time, if you find that you can no longer afford the agreement to pay off the mortgage arrears or if your mortgage lender is going through the repossession process call our Repossession Team on freephone 0800 567 7547 or leave your details with a good time to call and member of our legal team will contact you.

See the latest BBC report about the 15% rise in home repossessions by clicking here