Welcome drop in repossessions
Leading local advice charity, Exeter Citizens Advice Bureau, is welcoming an overall 39% decrease in repossession cases listed at Exeter County Court in the 3-month period ending 30th June 2015. This is in comparison with the same period last year.
Across all housing sectors, where a CAB adviser has assisted clients facing repossession, clients have avoided repossession in over 90% of cases.
Exeter City Council has provided financial support for this essential service.
Steve Barriball, Exeter Citizens Advice Bureau Chief Executive, said: “We have at least one adviser present at the Court each Tuesday morning to advise and advocate for clients.
"In the last three months there were 117 cases listed for repossession, an overall decrease on the same period the previous year of 39.2%. There have been very significant reductions across both mortgage (67.2%) and local authority (34.2%) sectors, and further decreases of 28.0% in the private sector and a 21.9% reduction in housing association repossessions.
"The number of repossession actions by Exeter City Council was down by 39.2%. There was an average of around 9 cases listed across all housing sectors each week.”
Steve explained: “These reductions in repossession are clearly good news. However, with the Bank of England Governor Mark Carney announcing that interest rates are likely to rise in late 2015, homeowners need time to adjust to an interest rate increase.
"With historically low interest rates over the past six years, a rise in rates will make things harder for those already struggling, and push those who are just about managing over the edge.
"To limit the pressure on families’ budgets, any rises in interest rates should be slow, steady, and come with plenty of warning. We have seen evidence showing that one in five homeowners will fall into arrears when interest rates rise. Access to money and debt advice will be essential to help prevent large numbers of people falling into problem debt.
Any increase in mortgage interest rates may also impact on the private letting sector as those with buy-to-let mortgages will also see an increase in costs and face challenges meeting these costs.
“I am grateful to the workforce of the Bureau for providing this essential service to families facing repossession. We are also grateful to Exeter City Council for funding this service.”
