The number of people losing their homes after failing to meet their mortgage repayments climbed sharply, says the UK's financial watchdog.
The number of people losing their homes after failing to meet their mortgage repayments climbed sharply, says the UK's financial watchdog.
The number of repossessions in the second quarter of the year was up 71% compared with the same period a year earlier, at 11,054.
The number of repossessions in the second quarter of the year was up 71% compared with the same period a year earlier, at 11,054.
The Financial Services Authority said the number of consumers struggling to clear their home loan arrears was up.
The Financial Services Authority said the number of consumers struggling to clear their home loan arrears was up.
Meanwhile, the Land Registry said house prices in England and Wales fell again.
This comes after the Bank of England predicted more woe for homeowners.
This comes after the Bank of England predicted more woe for homeowners.
Rising concern
Rising concern
The number of repossessions has been rising since September last year, the FSA said.
The number of repossessions has been rising since September last year, the FSA said.
The number of people who have fallen behind with their mortgage repayments for at least three months has been rising steadily for more than a year, the watchdog added. Cases were up 16% on a year ago.
The number of people who have fallen behind with their mortgage repayments for at least three months has been rising steadily for more than a year, the watchdog added. Cases were up 16% on a year ago.
Not all of these will lead to repossessions, and homeowners are urged to contact their lender as soon as they find themselves struggling to make repayments.
Not all of these will lead to repossessions, and homeowners are urged to contact their lender as soon as they find themselves struggling to make repayments.
The Council of Mortgage Lenders has estimated that 45,000 homes in the UK will be repossessed in 2008, up from 27,100 last year.
The Council of Mortgage Lenders has estimated that 45,000 homes in the UK will be repossessed in 2008, up from 27,100 last year.
This is the second time the FSA has released figures of this kind, which are based on data from 300 regulated mortgage lenders and administrators.
This is the second time the FSA has released figures of this kind, which are based on data from 300 regulated mortgage lenders and administrators.
It started collating the figures at the start of 2007.
Housing market
The data backs up other accounts of the state of the housing market, reporting that the number of new home loans has dropped and banks are being more cautious about who to lend to.
House prices have dropped heavily in the last year
Gross lending fell by 26% in the second quarter of the year compared with a year earlier.
It said that "significantly fewer" new loans had been given to people who could only offer a deposit of 10% of the value of the property. This was down from a peak of 15% of new lending in early 2007 to 10% this time.
Loans to borrowers with a chequered credit history represented 2.1% of new lending in April to June, compared with 3.4% a year earlier.
Separate figures released on Tuesday by the Land Registry show that house prices in England and Wales dropped by 2.2% in September.
That made the average home worth £168,814 and pushed the annual drop in prices to 8%.
Negative equity
These figures come shortly after the Bank of England reported that UK house prices showed a sharper decline than property values in the US.
The Bank's Financial Stability Report has estimated that 500,000 homeowners in the UK are in negative equity as a result of a 13% fall in UK property prices since their peak in October last year.
It predicted that this factor would rise to 1.2 million - one in nine UK homeowners - if house prices dropped by another 15% over the coming months.
A Bank spokesman said this was only a "gauge", were house prices to fall further, but it would be more optimistic than some other predictions, which have suggested 2.5 million homeowners could face negative equity.
Negative equity is when mortgage debts exceed the value of the property. It is not a major problem unless the owner is looking to sell or remortgage, as the value of homes is expected to rise again over time.
Have you been affected by the issues in this story? Have you recently found yourself in negative equity or do you face having your home repossessed? What are your experiences? Send us your comments using the form below.
Have you been affected by the issues in this story? Have you recently found yourself in negative equity or do you face having your home repossessed? What are your experiences? Send us your comments using the form below.
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