Significant fall in house sales from mortgage difficulties

Published on

Squeeze on savings

The number of homes given up in England each year between 2010 and 2012 because of mortgage difficulties is down by 54% compared to 2005-2009, according to new analysis from Castle Trust.

Analysis of the latest ONS English Housing Survey by Castle Trust shows that during the period 2010-2012, fewer than 12,000 homes a year were given up due to mortgage payment difficulties. This is significantly lower than 2005-2009 where there were 26,000 homes given up each year.

55% were sold to avoid mortgage arrears or to avoid court actions by the lender with the rest being taking over by the mortgage lender or the owner left voluntarily or by court order.

However, the housing investment and shared equity mortgage provider has cautioned homeowners to be wary of a rise in inflation and an increase in the UK base rate, which has been held at 0.5% for four years. Recent ONS research shows 34% of a household’s monthly expenditure goes on mortgage payments.

Castle Trust believes households can search for new and innovative lending products to protect themselves from any potential rises in mortgage costs.

Sean Oldfield, chief executive officer, Castle Trust said: “The number of homes being given up has fallen but the risk to homeowners of rising mortgage rates is still a major issue which shared equity can play a major role in reducing, including the risk of going into arrears, by controlling monthly mortgage commitments.

“The Partnership Mortgage helps lenders and borrowers overcome this issue so many more good quality customers can secure the mortgage they want while HouSAs enable investors to gain exposure to the national housing market directly or through an ISA or a SIPP.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

1 COMMENT

  1. That is because the FSA have pressured all the Lenders not to repossess properties and if they do then they will be accused of not Treating Customers Fairly. It would be interesting to see arrears figures then I am sure we would see what a dire situation things really are. These figures in the article in my opinion just again confuse things and paint a brighter picture that what is actually happening.

Comments are closed.

Latest articles

Buyer demand stabilises but mortgage market remains cautious

The UK housing market may be showing early signs of stabilisation but mortgage brokers...

Cooling rents could ease affordability pressures for first-time buyers

Slower rental growth and improving affordability across much of the UK could provide some...

ABS 2026 review: Global and UK issues cool the market

It’s that time of the year again when the world of wholesale funding descends...

HomeOwners Alliance appoints Sarah Tucker as lead mortgage commentator

HomeOwners Alliance has partnered with property and mortgage expert Sarah Tucker, who will become...

Affordable hotspots drive first-time buyer price growth

Some of Britain's most affordable housing markets are seeing the strongest first-time buyer demand,...

Latest publication

Other news

Buyer demand stabilises but mortgage market remains cautious

The UK housing market may be showing early signs of stabilisation but mortgage brokers...

Cooling rents could ease affordability pressures for first-time buyers

Slower rental growth and improving affordability across much of the UK could provide some...

ABS 2026 review: Global and UK issues cool the market

It’s that time of the year again when the world of wholesale funding descends...