CML marks repossessions rise

08/08/2008

The Council of Mortgage Lenders (CML) has announced an increase in the number of home repossessions for the first half of 2008.

From January to June, a total of 18,900 people lost their homes due to falling behind on their mortgages - a 29 per cent rise over the first half of last year.

However, this still represents just 0.18 per cent of the total market.

Nevertheless, the new results - roughly in line with a similar survey taken by the Financial Services Authority earlier this week - still point to increasing numbers of people struggling with their mortgage finances as the economic downturn continues.

CML director general Michael Coogan said: "The good news is that most people are coping well and continuing to pay their mortgages in full, despite the higher costs of food and fuel and the higher mortgage rates now prevailing in the market for those coming off cheaper original deals.

"But it is inevitable that more borrowers' coping strategies will come under pressure in current conditions than in the unusually benign years of the last decade. That's why lenders, government and the advice sector are working closely together to minimise the impact on borrowers."

Tags; Housing Debt and Bills, Debt Management and Banking, Budgeting Advice,

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