New figures from the Financial Services Authority have revealed a 41 per cent increase in home repossessions during the first three months of 2008. With a growing number of borrowers struggling to meet repayments as the credit crunch continues to take its toll, there were 9,152 new repossessions in the first quarter of 2008, compared with 6,471 in the first three months of 2007.
There was also an increase in the number of mortgages in arrears . With 54,000 borrowers falling behind on repayments in the first quarter, the number of mortgages in arrear rose to 302,000, representing a 15 per cent increase on the same period last year. These figures were met with anxiety by the Financial Services Authority, who criticised lenders for being too quick to evict people, instead calling for those at risk of repossession to be treated more fairly.
The FSA particularly criticised specialist lenders, who it claimed were overly eager to take borrowers to court without previously ensuring they would be able to repay loans . The Council of Mortgage Lenders, however, refuted the FSA’s claims, insisting that the industry was making efforts to ensure repossession only occurs in drastic situations.
Repossesions Rise as Borrowers Fall Behind on Loan Repayments
Repossesions Rise as Borrowers Fall Behind on Loan Repayments
Fri, 08 Aug 2008
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