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Repossessions up 12 per cent
Sri Carmichael21 Nov 2008
THE number of homes repossessed soared by 12 per cent in the third quarter of this year, with the full year total on track to be the worst since 1995.
Owners of 11,300 houses and flats lost their properties over the summer because they could not afford the monthly payments, according to figures from the Council of Mortgage Lenders.
The CML has not changed its forecast that banks will seize 45,000 properties by the end of the year, up 70 per cent on last year's total and the highest figure in 13 years.
It also warned that today's figures show the number of households which will be at least three months behind in their mortgage repayments by the new year is likely to be more than predicted.
The number of mortgages in arrears has jumped by eight per cent to 168,000 households at the end of September. That is just 2,000 shy of the total previously forecast for the full year.
Michael Coogan, director general of CML, said: "Looking ahead, conditions in the wider economy suggest a worsening picture for mortgage arrears, however carefully lenders handle their treatment of borrowers in difficulty."
He called on the Government to offer more help for struggling homeowners in Monday's pre-Budget report. The support on offer for people whose income has been unexpectedly reduced was "far too limited", he said
Mortgage lenders were trying not to resort to repossession, he added, as it was not generally in their interest.
The gloomy figures came as it emerged the Government has agreed a deal with banks to give struggling homeowners protection from repossession.
Measures to be announced on Monday will mean those behind in mortgage repayments will avoid repossession action for at least three months.
