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More homes face repossession threat
16.08.08
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Lenders are under pressure to do more to help homeowners after the number of repossession orders between April and June rose 24% on a year ago.
Government data showed a total of 28,658 mortgage possession orders were made in England and Wales during the second quarter of 2008, 4% higher than the first three months of 2008.
The number of mortgage actions hit a 14-year high last year after 95,433 orders were made in 2007. In 1991, when Britain was in the grips of its last house market downturn, the figure hit 143,000.
But with households facing an increased cost burden, housing charity Shelter said it was braced for an even bleaker picture to develop.
It said the number of people coming to the charity for help with mortgage possession actions over the past six months had increased by 55%.
Chief executive Adam Sampson added: "Lenders must play their part and ensure they look at all the options before rushing to the court, and use repossession as the last rather than first option."
He also urged people who are finding it difficult to meet their mortgage payments to seek advice early.
A mortgage repossession order is granted by a court and entitles the claimant - usually a lender - to apply to have the occupier evicted, although orders are not always enforced.
Figures provided by the Council of Mortgage Lenders last week - covering the whole of the UK - showed 18,900 repossessions, up 48% on the same period last year.
The CML said members had committed to four measures to help borrowers, including a pre-action protocol to ensure that repossession is a last resort.
