Data reveals home repossession increase

Repossession levels increased during the second quarter of 2008, new figures from the Financial Services Authority have revealed.

According to the new data, instances of homes being repossessed – which may have occurred due to owners falling into debt or becoming bankrupt – increased by 71 per cent during the period, resulting in over 11,000 people losing their homes.

The same period last year saw 6,746 people have their property repossessed due to failure to meet mortgage payments.

And 312,000 people are now in mortgage arrears, the report revealed, a 16 per cent increase on figures from the second quarter of 2007.

The Homeowners Advice Centre has urged property owners struggling to meet their mortgage repayments to talk to their lender “as soon as possible”.

Advisor for the body Al Elliot suggested that people in such as position may wish to consider switching to interest-only payments until they are able to repay the full amount.

By Tom Musk