Number of homes ‘given up’ down by 54 per cent

The number of homes given up in England each year between 2010 and 2012 because of mortgage difficulties is down by over half (54 per cent) compared to 2005-2009, according to new analysis from housing investment and shared equity mortgage provider Castle Trust.

By The Newsroom
Tuesday, 12th March 2013, 11:27 am

Analysis of the latest ONS English Housing Survey 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.

More than half (55 per cent) were sold to avoid mortgage arrears or to avoid court actions by the lender.

But Castle Trust has cautioned homeowners to be wary of a rise in inflation and an increase in the UK base interest rate, which has been held at 0.5 per cent for four years.

Recent ONS research shows that more than a third of the average household’s monthly expenditure goes on mortgage payments.

Castle Trust chief executive Sean Oldfield 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.”