Repossessions hit 12-year high
Repossessions hit 12-year high
Monday 11th August 2008
During the period from January to the end of June, some 18,900 homeowners had their properties taken back by lenders after falling behind with their repayments - a rise of 48 per cent compared with the same period last year.
The number of borrowers who have fallen three months or more into arrears also rose by 29 per cent.
Melanie Bien, director of independent mortgage broker Savills Private Finance, said: "Rising mortgage and other living costs are behind the increase in repossessions as people struggle to pay the bills.
"The situation is likely to get worse with rising food, fuel and mortgage costs as borrowers come off relatively cheap two-year fixed rates and remortgage onto more expensive deals or onto their lender's standard variable rate until pricing comes down."
Consumers have also been struggling with higher repayments on loan and credit card debt after lenders hiked the cost of borrowing in the face of the credit crunch.
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