Repossessions rate to get higher in 2007

Buy-to-let mortgages are responsible for much of the growth in demand for mortgages in recent years, according to one property expert.

The Council of Mortgage Lenders (CML) this week produced its latest statistics for arrears and repossessions during 2006 but it seems that the buy-to-let sector has much fewer of both than other sectors of the mortgage market.

Ed Stansfield, from consultancy firm Capital Economics, said: "Certainly over the last six months or so, buy-to-let mortgages have been responsible for much of the increase in mortgage demand."

The figures also highlight that mortgage repossessions have risen by 65 per cent with 17,000 happening last year. This number is similar to 2001 where there was a slowdown in the property market.

Thus around 19,000 repossessions are predicted for 2007 by the CML and they are usually down to short-term repayments problems.

London and south-east rates for repossessions are rising faster than elsewhere in the UK.


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