According to recent figures, the amount of UK house repossessions has risen by 48% in the first half of 2008 to all time new high. 18,900 homes have been repossessed by mortgage lenders when the owners couldn’t make mortgage repayments. This figure is apparently 0.16% of all mortgages in the UK.
The Council of Mortgage Lenders have predicted that around 45,000 houses will be repossessed by the end of 2008 due to borrowers struggling in the current financial climate to make payments.
But the financial services authority has warned lenders that some mortgage lenders are being far too eager to take borrowers to court.
CML has said that the current data is still low compared to the entire mortgage market and is only half of what is expected from the early 90’s housing market crash.
Mortgages that are three months in arrears or more have risen by 29% year on year making 1.33% of all home loans and mortgages with more than 6 months in arrears is 0.58% of all loans.