125 families a day hit by repossession
November 27, 2008
According to figures that were recently released around 125 families a day across the UK have been getting hit by repossession, as many households continue to struggle to keep up with mortgage repayments on their homes. In the three months to September 30th the number of repossessions increased to 11,300, which reflected a rise of 12 percent. The data comes from the Council of Mortgage Lenders.
Falling house prices coupled with tight credit conditions and high living costs have left many families unable to cope with their mortgage repayments, and despite moves by the government to try and cut repossession levels many are still losing their homes. The base interest rate has been cut by 2% over the past couple of months, but many consumers may not yet have seen this reflected in their repayments, and may therefore still be struggling with their previously higher rate of interest.
Compared to the previous quarter the number of borrowers that had fallen into arrears also went up, according to the CML.
One industry official stated: ‘The dramatic rise in repossessions at auction is the combination of two factors, the slowing housing market in the UK and the increasing desire of Banks and Building Societies to liquidate their repossessed stock.’
An official from the CML said: ‘Most borrowers who face payment problems successfully keep their home by working with their lender. The Government has taken some helpful steps towards targeted support for some of the most vulnerable households, but with a worsening economy now needs to make it a priority to go further. Increased help with housing costs is needed for a wider range of borrowers facing unforeseen repayment difficulties where there would otherwise be little prospect of early improvement. Next week’s Pre-Budget Report should concentrate on making much more assistance with mortgage payments available for people whose income is reduced, as help is currently far too limited.’
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