ROOF Blog

FSA figures show 54,055 people had their properties repossessed during 2009, up from 46,945 in 2008. But there was a fall in both the number of repossessions and the number of people who were unable to keep up with their mortgage during the final quarter of the year. Around 11,800 homes were repossessed during the final three months of 2009, 15% fewer than during the previous quarter. The figures are broadly in line with ones reported by the Council of Mortgage Lenders (CML) for 2009, which showed that 46,000 people had their home repossessed during the year, the highest level since 1995. The FSA’s figures are higher than the CML ones because they include second-charge mortgages and loans advanced by lenders who are not CML members.

Gross mortgage lending in January fell to the lowest level in 10 years as buyers were deterred by the end of the stamp duty holiday, figures showed this week – but experts have warned that lending could decline further as banks lose government funding support. According to the Council of Mortgage Lenders (CML), gross mortgages totalled just £9.1bn in January, down 32 per cent from the £13.4bn in December. This is the lowest monthly total since February 2000, when gross lending was £7.9bn. While a seasonal fall is usual between December and January, the CML said the drop was ‘larger than average’ due to higher purchase activity in December, as borrowers rushed to take advantage of the stamp duty holiday on properties valued less than £175,000.

Both the CML and the Bank of England agreed that mortgage lending edged up again in the last months of the year, against the usual seasonal downturn. The CML reported that gross mortgage lending reached an estimated £13.7bn in December, up 14 per cent on November. A rush of sales before the end of the stamp duty holiday and the prospective hike in VAT accounted for much of the improvement.

Mortgage lending fell by 10 per cent during November as the market suffered its traditional seasonal slowdown, figures showed today. A total of £12bn was advanced during the month, down from £13.3bn in October and 14 per cent less than in November last year, according to the Council of Mortgage Lenders (CML). The group said a modest decline was typically seen between October and November, although the 10 per cent fall was ‘a little larger’ than normal. But it added that market conditions were holding steady and it did not expect much change during the coming months. The CML’s economist, Paul Samter, said: ‘There could be a modest decline in underlying house buying activity in early 2010 due to the stamp duty holiday ending, with activity ‘bunching’ over the last few months of 2009.’

The Council of Mortgage Lenders (CML) reported yesterday that buy-to-let lending rose by 10 per cent in the three months to September, compared with the previous three months, after a period of near-hibernation for landlords who were hit particularly hard by the mortgage drought.

The CML said that buy-to-let demand for new purchases was ‘appreciably stronger’ than for remortgages, amid continuing lending constraints that force landlords to stay on their existing deals.

The CML pointed out that although the slight uptick in buy-to-let lending was welcome, it was from a low base.

Michael Coogan, director-general of the CML, said: ‘At this stage the recovery is modest, but the figures show that buy-to-let is here to stay.’

The Council of Mortgage Lenders (CML) has cut its forecast for the number of repossessions this year to 48,000.

Having anticipated 75,000 repossessions in 2009 in last year’s housing market forecasts, the forecast had already been revised down to 65,000 in June, but is now being cut again in recognition of lender forbearance, government measures and the beneficial effect of continuing low interest rates which are helping most borrowers facing difficulty to keep their homes.

Commenting on the latest arrears data and on the new forecasts, CML director general Michael Coogan said: ‘In terms of new lending next year, we expect a modest increase.

‘But it is difficult to see the case for a dramatic upturn in the absence of significant improvement in the wider economic picture. There is a risk that public spending cuts and higher taxes could choke off recovery. So, although we have become more optimistic, we remain cautious about market prospects.’

Gross mortgage lending totalled an estimated £12.5 billion in September, a 2 per cent rise from the £12.3 billion in August but down 27 per cent from September 2008, according to new data from the Council of Mortgage Lenders (CML). Behind the modest improvement from August to September and the relative stability of recent months is the balance between the types of lending taking place - there has been a pick-up in house purchase activity, but this is off-set by the decline in remortgaging. Paul Samter, CML economist observed: ‘House buying activity is running at considerably higher levels than around the turn of the year. However, it remains weak on any historic comparison and is unlikely to rise much further given the constraints the lending community faces and a still difficult economic backdrop.’

The Council of Mortgage Lenders (CML) said lending has started to pick up again after the number of home loans for house buyers rose by 4 per cent in May. In year on year figures this is still 28 per cent lower than a year ago. The CML said that nearly three-quarters of new mortgage are being taken out at fixed rates, the highest proportion since August 2007, and movers typically borrow 67 per cent of the value of the property. First-time buyers still need an average deposit of 25 per cent, and figures indicate that 80 per cent of first-time buyers under the age of 30 were receiving financial help from their parents.

Margaret Beckett has announced a proposed amendment to the law that would give tenants whose landlords are facing repossession more time to find somewhere else to live. Under the new proposals tenants will be given two months’ notice by mortgage lenders who have taken possession of the landlord’s home. The Council of Mortgage Lenders has warned that a number of tenants will slip through the cracks, especially those renting a property unofficially.

Figures from the Council of Mortgage Lenders (CML) show the number of people who lost their homes has soared by more than 50 per cent during the first quarter of the year. A total of 12,800 properties were repossessed by first-charge lenders during the three months to the end of March, up from 8,500 a year earlier (a 50 per cent increase) and up 10,400, or 23 per cent, from the previous quarter. Despite these figures, CML said its forecast of 75,000 repossessions during 2009 now looked pessimistic and say they may revise the figure downwards.