New figures from the Council of Mortgage Lenders show that repossessions between January and March 2011 were down ten per cent on the same quarter last year.
John Puzey, director of Shelter Cymru, said: “These figures are very encouraging and seem to suggest that a more sympathetic approach from lenders, together with the work of independent advice services, is having a positive impact.
“But we can’t afford to be complacent. We are still feeling the effects of the recession and last October’s cut in the rate at which Mortgage Interest Support is paid is likely to lead to many more people on fixed rate mortgages finding their monthly repayments unmanageable.
“Already, our advisers are seeing people in this situation. They are people who have lost their jobs, or are unable to work through ill-health or because of caring responsibilities, for whom the mortgage interest support is a lifeline, enabling them to stay in their homes until they can get back on their feet.
“The rather bitter irony is that if these people lose their homes and have to find accommodation in the private rented sector, the housing benefit to which they are then entitled is very often substantially more than the mortgage interest support that they were previously receiving.
“We have argued all along that many of the benefit cuts are a false economy – this is the perfect illustration of how short-term savings can lead to far greater costs, economically and socially, in the longer term.”
Shelter Cymru has advisers in every local authority in Wales. For details about services in your area, visit www.sheltercymru.org.uk or call 0845 075 5005.
