Friday May 9, 01:39 PM
Huge Rise In Home Possession Orders
By Sky News
A total of 27,530 mortgage possession orders were made in the first three months of this year - up 17% on the same period in 2007. The number is also 9% higher than in last three months of 2007. Repossession claims in England and Wales
were 16% up at 38,688, and 7% higher than the previous quarter.The government figures follow big increases in interest rates as lenders seek to claw back billions lost through the credit crunch. Last year a total of 27,100 homes were taken back after their owners fell behind with the mortgage payments. That was 21% more than in 2006 and the highest figure in eight years, according to the Council of Mortgage Lenders, The CML fears things will get even worse this year with an estimated 45,000 repossessions overall. It says it will happen as more and more people struggle with higher mortgage payments. Worryingly, say experts, this forecast was made before the full impact of the economic squeeze became clear. Problems in the wholesale money markets have forced lenders to increase their mortgage rates, despite cuts in the official cost of borrowing. They have also become increasingly risk averse, making it harder for customers to get the cheapest deals. :: Housing minister Caroline Flint says families facing repossession because of the credit crunch will get free legal help to avoid losing their homes. They will also get help and advice on managing their debts.
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