Repossessions may be at their lowest level for four years, but 100 people still lost their homes every day last year.
The Council of Mortgage Lenders confirmed 36,200 homes were repossessed last year - the lowest annual figure since 2007.
About 159,400 mortgages were in arrears by 2.5% or more of the mortgage owed at the end of the year - a reduction on 2010’s figure of 172,400.
Although arrears and repossessions throughout 2011 were fairly stable, the CML has no current plans to revise forecasts for this year.
Worsening unemployment and many families struggling to pay bills are likely to result in 45,000 repossessions and around 180,000 mortgages in arrears of 2.5% or more by the end of the year.
CML director general Paul Smee said: "Low interest rates and good arrears management by lenders are helping the vast majority of those borrowers who face difficulties to keep their homes and get back on track.
“This will continue, but in the face of wider economic difficulties and rising unemployment, we are concerned that there will be a higher number of people facing more serious problems in 2012. "Anyone worried about their finances should take advice on their other debts as soon as possible. This will give them the best possible chance of staying in their home even if they have a spell of financial difficulty. Forbearance cannot be indefinite; but for most households arrears are temporary and can be resolved."
If you are worried about your mortgage repayments, it’s likely you are also facing problems with other borrowing as well.
Looking for professional advice quickly can often help.
Lenders will want to see a budget that shows how much money you have coming in and a list of bills split in to priority costs, like the mortgage, council tax and food, and other debts, like credit cards, overdrafts and personal loans.
--- ENDS ---
Notes to editors:
- Money Debt and Credit is one of the UK's fastest growing financial solution companies.
- The company was founded in 2006 on the belief that every client has the right to appropriate financial advice. Since then we've gone from strength to strength and have helped thousands of people with a variety of financial solutions.
- We offer a range of services including Financial Management Plans, IVA s, Loans, Mortgages, Full & Final Settlements, Bankruptcy, Investments and Pensions.
- Specialties: IVA s, Financial Management Plans, Loans, Mortgages, Trust Deeds, Full and Final Settlements, Bankruptcy
For more information or debt advice contact:
Money Debt and Credit
45 Clarendon Road, Watford, WD17 1SZ
Tel. 0800 16 999 46
Image: digitalart
Exception: Stack empty.