CML: Repossessions rising

According to CML data, there were 8,140 repossessions in the first half of the year as more people get affected by debt, nearly double the amount of a year ago.

Debt is causing problems with repayments too, with 35,320 during this period being in arrears compared to 31,470 in the first half of 2005.

Commenting on the figures, CML director general Michael Coogan said that “repossessions are up”, but believes they are not at a danger level yet. However, he added that last week’s rise in the interest rates could push more people into arrears.

Figures from the CML show that the repossession and arrears rate is at its highest since 2001, even though the economy is doing well and employment rates high.

“Many repossession proceedings are avoidable,” commented ClearDebt chief executive, David Mond.

“Often mortgage arrears start because other debts have become unmanageable, or because a life change, like a period of unemployment, caused a cashflow crisis from which it was impossible to recover.”

Mr Mond continued: “In the early stages of mortgage arrears it is almost always possible to come to some arrangement with your lender – and this will be taken account of if you decide to use a debt resolution procedure, like an IVA, to deal with your other debt.

“As always, early action is the secret when it comes to staying on top of your debt.”