Repossessions ‘happening at four a minute’

Every minute in Britain sees four homes being repossessed, according to new research.

Figures published today (November 3rd) by Credit Action have …

Every minute in Britain sees four homes being repossessed, according to new research.

Figures published today (November 3rd) by Credit Action have revealed a home is taken back by the mortgage lender once every 14.6 seconds.

And there are 197 mortgage possession claims issued every day, along with 154 mortgage possession orders.

Such figures may not be as high as the worst of some previous downturns due to the low base rate, but for every household that loses the roof over their head, it is a tale of woe.

However, there are steps consumers may take that can head off the threat of losing a home.

One of these is to contact a lender quickly when difficulties arise, to see if arrangements can be made.

But often some extra action is needed, such as a debt management plan or even an IVA.

These can help ease the monthly debt repayment burden of those who owe large amounts, which could see other repayments trimmed and therefore free up some cash to be used to make mortgage payments.

One of the major problems that can cause people to fall into mortgage arrears is unemployment, with Credit Action noting 1,644 people are made redundant every day.

However, the overall number of repossessions carried out by first charge mortgage lenders was seven per cent lower in the first half of 2011 compared to the equivalent period last year, according to the Council of Mortgage Lenders.

This may suggest many consumers are taking action to save their homes, as well as some lenders being lenient.

Posted by Paul Thacker
 

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