Repossession figures have been released to show a 12% increase in the number of repossessions during the past three months, according to the Council of Mortgage Lenders (CML).
Worryingly this means that 125 families a day are having their homes seized by mortgage lenders, due to higher mortgage costs, falling house prices and a shrinking disposable income. The number of UK borrowers facing mortgage arrears went up by 8% over the same period.
Although mortgage lenders say that repossession is always as a last resort, the CML predict that 45,000 families will face repossession this year alone, a rise of 72% from 2007. These figures are not expected to get any brighter during 2009, as fears about a worsening economic crises and a rise in unemployment may take hold.
What to do when facing Repossession:
If you are falling behind in your mortgage payments or you are worried about how you can afford the next mortgage payment, it is essential that you get in touch with your mortgage lender as soon as possible. Explain your current situation and they will be able to offer you advice.