Repossession rate ‘likely to rise’

The repossession rate among UK consumers with serious debt management problems is set to increase, according to the Council of Mortgage Lenders (CML).

Around 13,500 homes were repossessed during the second half of last year and the council anticipates that more properties will suffer the same fate in 2008.

In the earlier years of the decade, it was typical for around 10,000 people to lose their homes on an annual basis but last year the figure rose to more than 17,000.

However, the total number of repossessions in 2007 was almost ten per cent below the initial estimate of the CML.

Michael Coogan, director general of the CML, said: “Anyone who thinks they might be heading into difficulty should contact their lender, as problems are easier to resolve if they are tackled at an early stage.”

Figures from Halifax recently suggested that the number of people taking out debt consolidation loans was considerably higher in January 2008 than in most months of last year.