Repossessions show no sign of slowing

By agency reporter
11 May 2012

Figures released yesterday (May 10) by the Council of Mortgage Lenders reveal the rate of repossessions in the UK remains high, four years after the recession began.

The number of repossessions in the first quarter of 2012 was 9,600 - the same as in the first quarter of 2011.

Campbell Robb, Chief Executive of the housing and homelessness charity Shelter said: "Although there’s been no increase in repossessions, neither have they gone down and it’s extremely worrying that four years after the credit crunch they’re showing little sign of slowing.

"With many lenders raising interest rates, hundreds of thousands of struggling homeowners will be worrying how they will cope with an increase in mortgage costs.

"A one per cent increase on a £100,000 mortgage will cost homeowners an average of £55 more each month, and for many this will be enough to tip them into arrears.

"Sadly, recent changes to Support for Mortgage Interest (SMI) mean that families who face repossession will find there is less support available for them."

He concluded, "We’re really concerned that government policy to cut the safety net for homeowners at a time of increasing unemployment will inevitably lead to more households facing the devastation of losing their home."

[Ekk/4]

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