CML scotches repossessions rumour

The Council of Mortgage Lenders has branded rumours the recent rise in repossession orders has been fuelled by dodgy sub-prime and self-cert mortgages as pure speculation.

One industry pundit contacted Mortgage Strategy to say that they had heard from a government source that the rise in repossession orders was “predominantly in the sub-prime market and almost entirely in the self-cert sector”.

Figures out last week from the Department of Constitutional Affairs revealed that 54,344 actions were entered in the first half of the year and 32,366 orders made in the same period. But, as the CML pointed out, only 4,640 actual repossessions were made, a relative drop in the ocean compared with the 11.5 million mortgage transactions made over the time.

As to pinning down the product type connected with repossessions, Sue Anderson, head of external affairs at the CML, says that while lenders and the industry in general would dearly love to know this information, it’s impossible under the present system.

She says: “Because the court service doesn’t collect information about who is entering these actions, anything more is pure speculation.

“We’re only looking at less than 5,000 repossessions out of 11.5 million mortgage transactions.”