CML gives cautious welcome to latest drop in mortgage repossessions

MORTGAGE repossessions have fallen for the fourth consecutive quarter as low interest rates help borrowers keep on top of repayments, according to the Council of Mortgage Lenders.

Lenders seized 8,900 homes in the three months leading up to October. This represents a 5 per cent drop compared with the previous quarter, and down from 12,000 at a peak of a year ago.

There was a slight increase in the number of people with the largest arrears, which may indicate the downward trend is coming to an end. Some 64,800 borrowers are now 12 months behind with their repayments, compared with 64,500 three months ago

There was also a modest improvement in the number of mortgages in arrears, with 176,100 mortgages with arrears of 2.5 per cent or more of the outstanding balance. This is down from 178,200 at the end of June, and 203,800 a year earlier.

Michael Coogan, director general of the CML, gave the figures a cautious welcome. He warned: "We cannot take falling arrears and possessions for granted, and the recent welcome trend may reverse. Many households are adept at adjusting their spending and prioritising their bills to manage their way successfully through periods of temporary difficulty, but the capacity to do this will depend on individual circumstances."

Much will depend on the recovery in the housing market, of which there is little sign. Mortgage lending remained flat in September as activity stalled, according to the CML.

Scots miss out on Isas

MORE than half of Scots are saving for the future but thousands are still missing out on tax breaks by not using their Isa allowance, according to research from Fidelity Investment Managers.

It found that Scots typically save 152 each month. Glasgow has the highest number of savers but Glaswegians have the fewest Isas. Edinburgh residents are putting away the most each month but more than a third still do not have an Isa. People in Aberdeen have the most stocks and shares Isas but they save the least on average each month.

Two-fifths of people in Scotland do not use their annual Isa allowance. Just one in ten is maximising their savings in a stocks and shares Isa.

Separate research from Bank of Scotland has revealed that single Scots save more than couples.

Less than a fifth of married or cohabiting people said saving was their current financial priority, compared with 29 per cent of singletons.

SVM fund goes global

EDINBURGH fund manager SVM Asset Management is to launch its first global stock-picking fund when it revamps its SVM UK Alpha fund next month.

SVM hopes to generate high share price returns by investing in 30-40 global equities which the group believes are trading below their intrinsic value.Neil Veitch, manager of the SVM UK Opportunities fund, said: "Our investment approach is similar to that of a trade buyer: we seek to establish the true value of the business in order to identify opportunities which have been overlooked by the wider investment community."

First Direct raises rate

FIRST Direct has increased the rate on its regular saver to 8 per cent for existing customers. The one-year fix is only available to current account holders, as it requires a monthly investment of between 25 and 300 by standing order from a First direct current account.

Elsewhere, Skipton has introduced a limited edition e-bond paying 3.3 per cent. The online bond is fixed for one year and allows investments of between 500 and 1 million. Once the term expires it will mature into an online loyalty saver currently paying 2.25 per cent.