Repossessions figures played down

09-Aug-2007

First time buyers worried over the news that home repossessions rose by almost 30 per cent in the first half of the year have been reassured by suggestions that figures are still historically very low.

The Council of Mortgage Lenders (CML) reported the year-on-year rise late last week, but despite recent interest rate rises the base rate itself remains relatively low, many analysts have suggested.

And while there has been concern over the levels of bad-credit lending, borrowers going in with a degree of financial prudence should find that they can cope as long as they ensure their mortgage repayments can cope with further rises.

"The greater risks inherent in sub-prime lending are resulting in ... higher levels of repossession in that part of the market," commented CML director general Michael Coogan.

"[But] the vast majority of mortgage borrowers will continue to cope, even in a market where affordability is stretched. Anyone who thinks they may face difficulties should talk to their lender early to explore their options," Mr Coogan added.

The average income multiple for first-time buyers currently stands at a record 3.37 times the typical salary, the CML revealed earlier this year.

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