New Target For Reposgreenspun.com : LUSENET : Repossession : One Thread
The Council of Mortgage Lenders is setting a new target for repossessions.
It aims to keep the average number of repossessions below 30,000 a year - the average for the past 10 years is nearly 35,000 a year - and to keep repossessions lower than they would have been in comparable economic circumstances in the past.
The new target replaces the goal lenders set themselves in 1999, to have a 55% take-up of mortgage payment protection insurance, which covers mortgage repayments if the policyholder cannot work due to an accident, sickness or unemployment, by 200 4.
The group says it had changed the target because people were using a wide range of other insurance polices to cover mortgage repayments.
Low unemployment and the recent boom in house prices also contributed, as many people have high levels of equity in their property, putting them in a stronger position if they are unable to work.
The CML says lenders will continue to encourage borrowers to take out mortgage payment protection insurance, as well as think about how they would manage if they couldn't work.
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