| Home repossessions rise by 24% |
| Friday, 15 August 2008 | |
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The number of homeowners in England and Wales facing repossession after falling behind on their mortgages has risen by nearly a quarter in the past year, figures showed today.
It is the highest level since the last recession, reflecting the increased burden placed on British borrowers as the cost of living soars. Government data revealed that a total of 28,658 mortgage possession orders were made in England and Wales during the second quarter of 2008, up 24% from the same period a year ago. It is a 4% increase compared to the first three months of this year. The figures from the Ministry of Justice come a week after lenders' data for actual repossessions across the UK also showed a leap in numbers. Today's figures relate to court activity which may not result in a possession. As a result the figures are usually higher than those published by the Council of Mortgage Lenders (CML), which last week reported 18,900 UK repossessions, up 48% on the same period last year. Repossession orders come early in the process and so do not always end with somebody losing their home. It is when a court grants an order for the possession of a home, but is sometimes abandoned if a repayment deal can be struck between mortgage lender and borrower. The Ministry of Justice said there were 39,078 mortgage possession claims in the second quarter of this year, an increase of 17% on 2007 but unchanged on the first quarter. The number of repossession claims reached a 15-year high at 137,591 last year and has continued to climb as the higher cost of mortgages hits homeowners following a series of interest rate rises last year. |