The CML revised its forecast for the second time ‘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.’
According to the Council’s figures, 11,700 properties were repossessed in the third quarter of 2009 – 300 more than in the previous quarter, and 5% more than the figure recorded in the third quarter of 2008, but still 1,000 lower than the first quarter of 2009.
So is this good news?
While any reduction in the number of houses predicted to be repossessed in 2009 is good news, the figure is still high – and it’s predicted to be even higher next year (53,000, which works out at 0.48% of all mortgages).
Advice for homeowners
Although keeping on top of your mortgage payments http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013261 is essential, making sure you can afford the repayments to your unsecured debts is also very important.
If you fall behind on your mortgage payments, you should contact your mortgage provider without delay and explain your situation. You may be able to reach an agreement on an alternative repayment plan that is affordable. It is, however, vital that you understand all the implications of doing this – your lender can explain.
Likewise, if your unsecured debts become unmanageable and you can no longer afford the repayments, you should contact your lender(s) and explain your situation. You could also contact a professional debt adviser, who could give you tips on talking to your lender(s) – negotiating with them and possibly asking them to accept lower repayments for a period of time (until you get your feet back on the ground).
The right debt adviser will be able to assess your situation and may suggest a suitable debt solution to help you tackle your debts – for example, an IVA http://www.thinkmoney.com/debt/IVA/ (Individual Voluntary Arrangement) or a debt management plan.
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