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Fewer than feared are set to lose their homes
Evening Standard 22 Jun 2009Record low interest rates mean fewer people than feared will lose their homes this year.
That is the verdict of the Council of Mortgage Lenders, which today cut its forecast for repossessions during 2009 to 65,000 from a near-record 75,000.
The figure is still the worst since 1992 and far higher than the 40,000 who lost their homes in 2008.
"The large cuts in interest rates have benefited many, making it easier for households who suffer loss of income to continue to pay their bills," said CML economist Bob Pannell.
The Bank of England has slashed rates to a 315-year low of 0.5% - reducing mortgage costs by thousands of pounds for households around the country.
However, the CML warned that rising unemployment will mean 360,000 households will fall into mortgage arrears this year - double the 182,600 of last year.
