Repossession coverage "misleading" - buy to let mortgages

20 October 2008

The Council of Mortgage Lenders (CML) has stated that media coverage of recent repossession figures may be "misleading".

It noted that there has been "inadvertent media confusion" on the matter, particularly concerning Northern Rock, leading to many outlets criticising banks for their level of repossessions.

In fact, the CML declared that the rate of repossessions stands at a "modest" 0.38 per cent.

Over 98 per cent of borrowers continue to make repayments on time and those who do fall into arrears usually do so because of a change in circumstances such as job losses, the body revealed.

It comes after the CML came to the defence of the buy to let mortgages market, when concerns were raised that the sector was in trouble after the collapse of Bradford & Bingley (B&B).

B&B - one of the UK's largest buy to let lenders - was rescued by the government, which transferred some of the business to Abbey Santander and took the rest into public ownership.