Monday 6th August, 2007 

The latest figures issued by the Council of Mortgage Lenders (CML) indicate that number of homes being repossessed has increased.

According to figures issued by CML the number of properties being repossessed in the first six months of the year is estimated at 14,000 which is a rise of 30% for the corresponding time.

Although the number of people failing to maintain mortgage payments resulting in repossession has increased, the number of mortgages in arrears has decreased by 3% from the same period last year to 125,00.

These figures suggest that the banks are being less patient with borrowers who have gone into arrears with their mortgage payments. The unexpected rise in interest rates in the last year, by 1.25%, has stretched borrowers' budgets especially in the sub-prime sector. With the US suffering from the fallout from sub-prime mortgages borrowers' defaulting, it's little wonder that the banks are losing patience with borrowers. In the US, the sub-prime problem has led to a falling in confidence in the housing market.

Debtwatchdog's advice is that you should not ignore any problems you have about meeting mortgage payments or you will lose your house. Figures issued by the Ministry of Justice indicate that not all the 32,922 mortgage possession claims resulted in repossession in the second quarter of this year. If we compare the figures above with the Ministry's figures it is quite clear that most claims do not result in repossession mainly due to the borrower presenting in court a case for not proceeding or the lender has come to an arrangement with the borrower.