British Sees More Property Reposessions
The United Kingdom has seen a "significant" rise in property repossessions, according to new, revised statistics from the Council of Mortgage Lenders here.
The number of U.K. properties taken into possession during the first half of the year was up close to 30% compared to the same period last year and up 18% compared to the previous six-month period, according to the council.
"Interest rates are clearly higher than many were expecting and are set to remain so. And the greater risks inherent in subprime lending are resulting in significantly higher levels of repossession in that part of the market compared to mainstream experience. This impact has been underestimated in our past market data, which we have now revised," said CML director general Michael Coogan.
Mr. Coogan said that although the rise in repossessions has been "sharp," by historical standards, "the absolute number of repossessions is still low." (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com/