Bad Credit Families Escape House Repossession as Figures Continue to Fall, But for How Long?

Oct. 8, 2010 - PRLog -- The Council of Mortgages Lenders (CML) has confirmed the number of bad credit home repossessions in the second quarter of 2010 (April, May and June) were 400 fewer than those in the first quarter of 2010.

The figure of 9,400 is some 2,700 off last years peak of 12,100 which was recorded in September, lowering 2010’s total forecast of repossessed homes from 53,000 to 39,000.

“This is certainly excellent news for many households”, confirmed a spokesperson for Bad Credit Loans 4 You, a UK specialist in finding Bad Credit Loans (http://www.bad-credit-loans-4-you.co.uk ), “but it could quite easily be just a temporary slowdown before other factors, including government cuts, rapidly increase these figures again”.

The expected drop of forecasted repossessions is also supported by statistics from the courts in England and Wales, with the number of attempts by lenders to seize the homes of defaulting borrowers in bad credit, falling again by 5% to 17,774.

The number of claims peaked at the start of 2008 when it reached nearly 40,000 in the first quarter of the year, but this figure has continued to fall, apart from a brief rise back in the second quarter of 2009.

Nearly half of all the repossession orders placed against bad credit borrowers are suspended by the courts, usually to allow the homeowner time to get their bad credit payments back on track.

Despite the figures showing an apparent improvement in arrears and repossessions, there are still many families with high levels of bad credit arrears who are becoming worryingly close to losing their home.

CML’s director general, Michael Coogan, was quoted as saying that although there was a fall in the number of bad credit repossessions, the situation was “far from a healthy all-clear”.

Although Mr Coogan stated that current circumstances were being “contained at lower levels than we expected” and in “comparison to the 1990’s recession”, he forewarned that the prospect of “higher interest rates, a possible rise in unemployment [and] reduced government support for mortgage payments” have weakened the “safety net for borrowers”.

The Consumer Credit Counselling Service (CCCS) have mirrored the thoughts of Mr Coogan, warning that repossessions would be likely to increase in the forthcoming year.

The CCCS, however, are also concerned about what a housing market recovery may mean for those with bad credit borrowings.

“[It] may lead to an increase in the number of repossessions” warned Malcolm Hurlston, CCCS chairman, “as lenders enforce suspended possession orders after previous leniency”.

Support for mortgage interest payments for people who have lost their jobs is due to be halved from 6.08% to 3.09% in October of this year to match the Bank of England’s average mortgage rate.

This will mean that those bad credit borrowers who have finely-balanced arrears will be likely to face repossession if they are unable to find a way to improve their personal situation, or obtain a bad credit loan to help them until they can.





Loans 4 You helps out people who fear they have been blacklisted because of CCJ’s and Defaults.

Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.

Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.

For help, phone 0800 215 5863 or visit
www.bad-credit-loans-4-you.co.uk   

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Notes for Editor:

www.bad-credit-loans-4-you.co.uk

Loans 4 You of London Ltd
Innovation Centre
Monks Brook
PO30 5WB
United Kingdom
Tel: 0800 215 5863

Loans 4 You was formed in April 2010, bringing together a team of specialists that together offers over 50 years of expertise to help applicants gain the unsecured loans they need.

From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing loans for people with bad credit.

Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.

Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.

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Loans 4 You helps people source the personal loan they need. Loans 4 You can help people with bad credit history, poor credit history and obviously good credit history, our senior managment have over 50 years collective experience in the finance field.