Repossession predictions ‘were too high’

Predictions made about the number of UK homes that would be repossessed were too high, the Council of Mortgage Lenders (CML) has acknowledged.

Spokesman for the CML Bernard Clarke noted that the body’s original forecast of 75,000 homes lost was then revised downwards to 65,000 and is now expected to be 48,000.

He commented: “One of the reasons we’re seeing a lower level of repossessions than we originally thought is that a lot of work has gone into helping to manage borrowers through those circumstances.”

This has been the result both of help from the government and the forbearance of lenders, he remarked.

Such news may encourage those keen on applying for a mortgage.

The rate of repossession will be slightly up at 53,000 in 2010, Mr Clarke predicted, due to higher unemployment.

A rise in joblessness is inevitable in the coming months, chancellor of the exchequer Alistair Darling stated in parliament last month.

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