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

Phoebus completes latest SOC 2 Type II assessment

Phoebus Software has renewed its SOC 2 Type II attestation after KPMG assessed the...

Low-deposit mortgage lending climbs 38% to £24.7bn

Mortgage lending at loan-to-value ratios above 90% rose sharply over the past year as...

Stonebridge reports sharp rise in protection policies placed in trust

The proportion of protection policies being placed in trust has risen substantially over the...

Countrywide Surveying adds 35 newly qualified surveyors in 2026

Countrywide Surveying Services has added 35 newly qualified surveyors to its workforce so far...

Government plans 2.5% deposit scheme for first-time buyers

First-time buyers in England could purchase a new-build home with a deposit of just...

Latest publication

Other news

Buy-to-let has matured as a market

Buy-to-let turned 30 last week, and it's a good moment for some much-needed positivity...

Phoebus completes latest SOC 2 Type II assessment

Phoebus Software has renewed its SOC 2 Type II attestation after KPMG assessed the...

Low-deposit mortgage lending climbs 38% to £24.7bn

Mortgage lending at loan-to-value ratios above 90% rose sharply over the past year as...