Home repossessions may surge tenfold in 2022, banking body UK Finance warns.
Millions of borrowers have struggled to pay their mortgages in the virus crisis – with many taking a break from repayments.
Last year 2,900 properties were repossessed by lenders, but the trade body predicts this will rise to 22,300 in 2022.
Thousands of borrowers have struggled to pay the mortgage in the virus crisis – with close two million taking a break from repayments
A ban on seizing homes ends on April 1 – more than a year after it was put in place by the Financial Conduct Authority.
While the number of homeowners on mortgage holidays has fallen since June – when it peaked at 1.8 million – the latest data shows around 127,000 deferrals were in place in November.
Around 81,300 households were in home loan arrears last year, but figures suggest this could climb to 142,200 in 2021, prompting a surge in repossessions.
Paula Higgins, of the HomeOwners Alliance, says: ‘The Government needs to work with lenders on a long-term plan in preparation for the debt hangover we are facing.’
Borrowers struggling to pay their mortgages have until March 31 to apply for a mortgage holiday of up to six months.
Any borrower struggling to manage their payments should contact their lender.
A UK Finance spokesman says: ‘Possessions last year reached a historic low due to the moratorium, alongside the unprecedented support provided by lenders to customers impacted by Covid-19.’
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