Repossessions up in 2007
More homes were repossessed in 2007
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Friday, 08, Feb 2008 03:22
The number of UK home repossessions rose in 2007 and is set to increase further in 2008, banks and building societies said today.
The Council of Mortgage Lenders (CML), which represents lenders, said that 27,100 homes were repossessed over the year representing 0.23 per cent of all mortgages.
This is higher than the 2006 figure of 22,400, or 0.19 per cent, and the CML warned that this is likely increase further in 2008.
Housing charity Shelter said the rise in repossessions highlighted an urgent need for action.
Adam Sampson, chief executive of Shelter, said: "Last year 80,000 people sought help with mortgage problems from Shelter, a hike of 10,000 from the previous year.
"The government must wake up before it's too late and show it has learnt the lessons of the 90s."
Looking ahead, the CML said the downward trend in interest rates would help homeowners but warned that funding pressures as a result of economic conditions, and the so-called credit crunch, would continue to have an impact.
Michael Coogan, CML director general, said lenders offer help to those facing financial difficulty and repossession is treated as a last resort.
But Mr Coogan added: "Despite this, the number of repossessions is likely to be higher in 2008 as a result of wider issues in the economy and the mortgage funding markets."
Following the Bank of England's base rate cut on Thursday, several lenders including Halifax, NatWest, Woolwich, Abbey, Nationwide and HSBC said that they would reduce their rates by a quarter of a per cent, which will help lower mortgage costs for homeowners.