Repossessions 'increase' as credit crunch bites

21/11/2008

Home repossessions have increased, figures from the Council of Mortgage Lenders (CML) showed today.

According to the group, the number of Britons who have lost their homes has risen by 12 per cent over July, August and September.

The CML also said that repossessions numbers for 2008 would rise to 70 per cent over 2007's total.

Credit crunch conditions and the economic slowdown have made it more difficult for borrowers to secure loans at advantageous rates.

This has had a direct impact on the ability of homeowners to remortgage their homes and has been blamed on the rising repossessions.

Michael Coogan, director general of CML, said: "Looking ahead, conditions in the wider economy suggest a worsening picture for mortgage arrears, however carefully lenders handle their treatment of borrowers in difficulty."

CML now plans to release mortgage repossessions figures every three months.

The government, through the Ministry of Justice, also issues quarterly repossessions data.

Tags; Housing Debt and Bills, Young Family Finances,

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