Mortgage repossessions rise
Mortgage possession actions rose last year
Friday, 03, Feb 2006 02:58
The number of repossessions rose in the second half of last year, but is still at historically low levels.
There were 5,630 possessions by mortgage lenders in the last six months of 2005, a rise of 22 per cent on the 4,620 in the first half of the year, figures published today show.
But this is still well below the peak half-yearly figure of 38,930, according to the Council of Mortgage Lenders.
There was also a 50 per cent rise in the number of mortgage possession actions at county courts in the fourth quarter of 2005, compared with the same period a year earlier.
Mortgage possession actions - a summons to court beginning the process that leads to the repossession of a property - reached 31,018, according to Department for Constitutional Affairs.
And there was a 58 per cent rise in mortgage possession orders - when a court, following a judicial hearing, grants an order for immediate recession of a property - taking their number to 18,784.
CML figures also reveal rises in the number of mortgages in arrears of between three and six months of 11 per cent on the end of 2004, and a rise of those six to 12 months in arrears of 21 per cent.
"As expected, arrears and possessions are increasing from what was a phenomenally low trough," said CML director general Michael Coogan.
"Although the scale of increase is notable, the absolute numbers are still extremely small, and set to remain so."
He added that now was a good time for borrowers to review their financial commitments. "Cutting unnecessary spending, ensuring you have a suitable mortgage deal, and taking our suitable insurance such as mortgage payment protection insurance could make the difference between coping and falling into trouble."
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