2007 repossession rate less than predictedNew figures have shown that the repossession rate for 2007 was around ten per cent less than had been expected.

The actual rate was 0.23 per cent, which is under half the rate recorded in for the first half of the 1990s.

Standing at 27,000, the number of repossessions is some ten per cent lower than the 30,000 the Council of Mortgage Lenders (CML) had predicted.

The figures show that while repossessions are on the rise, they only represent a minimal fraction of all mortgages.

Michael Coogan, CML director general, commented: "Lenders take their responsibilities to borrowers facing repayment difficulties very seriously, and many go to exceptional lengths to provide debt counseling, reschedule payments, extend loan terms, or in some circumstances even allow payment breaks."

He stressed that repossession is a last resort decision and that lenders strive to reach a payment solution that will be realistic for both parties.

In related news, the CML has said that it welcomes the Monetary Policy Committee's decision to cut the base rate to 5.25 per cent.

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