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| Home repossessions rise to 40,000 | Home repossessions rise to 40,000 |
| (10 minutes later) | |
| The number of homes in the UK repossessed by lenders last year rose by 54% to 40,000, according to the Council of Mortgage Lenders (CML). | The number of homes in the UK repossessed by lenders last year rose by 54% to 40,000, according to the Council of Mortgage Lenders (CML). |
| Despite the recession, the CML said this was fewer than it had originally predicted, but it expects repossessions this year will reach about 75,000. | Despite the recession, the CML said this was fewer than it had originally predicted, but it expects repossessions this year will reach about 75,000. |
| It said lenders were making "strenuous efforts" to ensure repossessions were a last resort. | It said lenders were making "strenuous efforts" to ensure repossessions were a last resort. |
| But it also reported a sharp rise in homeowners handing back their keys. | But it also reported a sharp rise in homeowners handing back their keys. |
| "We strongly urge borrowers to contact their lender and work with them before taking this step, as there may be other solutions," said the CML's director general Michael Coogan. | "We strongly urge borrowers to contact their lender and work with them before taking this step, as there may be other solutions," said the CML's director general Michael Coogan. |
| "Borrowers are still liable for their debt, even if they leave the property, so working through their problems is much more likely to be in their best interests," he added. | "Borrowers are still liable for their debt, even if they leave the property, so working through their problems is much more likely to be in their best interests," he added. |
| Arrears | Arrears |
| The level of arrears among mortgage borrowers also became worse as the recession gripped the economy. | The level of arrears among mortgage borrowers also became worse as the recession gripped the economy. |
| We're putting in place this comprehensive package of measures to try and reduce the risk of repossession as much as we can Iain Wright, Housing Minister class="" href="http://www.getintoamericanfootball.com/">Dealing with the threat of repossession in England and Wales class="" href="either url here">Dealing with the threat of repossession in Scotland | |
| By the end of last year, 182,600 mortgages had arrears worth 2.5% or more of the outstanding balance owed to the lender. | By the end of last year, 182,600 mortgages had arrears worth 2.5% or more of the outstanding balance owed to the lender. |
| That amounted to 1.57% of all mortgages currently in existence. | That amounted to 1.57% of all mortgages currently in existence. |
| That was up sharply from the 1.08% of mortgages with this level of arrears at the end of 2007, and the 1.29% of mortgages in this position at the end of September of 2008. | That was up sharply from the 1.08% of mortgages with this level of arrears at the end of 2007, and the 1.29% of mortgages in this position at the end of September of 2008. |
| Housing Minister Iain Wright said the government had announced several initiatives designed to provide tailored support to people who risked losing their homes. | Housing Minister Iain Wright said the government had announced several initiatives designed to provide tailored support to people who risked losing their homes. |
| "For every repossession, it's a tragedy for somebody - for a family or household - so we have to continue to be focused and determined to minimise as much as possible the risk of repossession," he said. | "For every repossession, it's a tragedy for somebody - for a family or household - so we have to continue to be focused and determined to minimise as much as possible the risk of repossession," he said. |
| "That's why we're putting in place this comprehensive package of measures to try and reduce the risk of repossession as much as we can." | "That's why we're putting in place this comprehensive package of measures to try and reduce the risk of repossession as much as we can." |
| Court actions | Court actions |
| Figures from the Ministry of Justice (MoJ) - also released on Friday - reveal that a protocol that ensures lenders give some breathing space to homeowners who have fallen behind with their repayments could be having an effect. | Figures from the Ministry of Justice (MoJ) - also released on Friday - reveal that a protocol that ensures lenders give some breathing space to homeowners who have fallen behind with their repayments could be having an effect. |
| The ministry's figures show that the situation earlier in the repossession process, when lenders first go to court for permission to take back a mortgaged property, has eased. | The ministry's figures show that the situation earlier in the repossession process, when lenders first go to court for permission to take back a mortgaged property, has eased. |
| The figures for England and Wales show that initial repossession claims - the first stage of the process - stood at 26,008 in the last quarter of 2008. | The figures for England and Wales show that initial repossession claims - the first stage of the process - stood at 26,008 in the last quarter of 2008. |
| That was 32% lower than in the previous three months, and 29% lower than in the final three months of 2007. | That was 32% lower than in the previous three months, and 29% lower than in the final three months of 2007. |
| "At this early stage is not clear to what extent the launch of the [protocol] has led to a permanent fall in the numbers of new mortgage possession claims being issued, as opposed to some merely being postponed," the ministry said in a statement. | "At this early stage is not clear to what extent the launch of the [protocol] has led to a permanent fall in the numbers of new mortgage possession claims being issued, as opposed to some merely being postponed," the ministry said in a statement. |
| Guidance | Guidance |
| The guidance, introduced at the end of last year, means that County Court judges ensure that all lenders demonstrate that they have tried to discuss and agree alternatives to repossession, and that court action is not taken within three months of a borrower missing a payment. | The guidance, introduced at the end of last year, means that County Court judges ensure that all lenders demonstrate that they have tried to discuss and agree alternatives to repossession, and that court action is not taken within three months of a borrower missing a payment. |
| The number of court orders being made by county court judges - the next stage in the process - stood at 29,095 in the final three months of 2008. | The number of court orders being made by county court judges - the next stage in the process - stood at 29,095 in the final three months of 2008. |
| This was 14% higher than the same period a year ago and broadly the same as the previous quarter. | This was 14% higher than the same period a year ago and broadly the same as the previous quarter. |
| Not all of these will lead to actual repossessions, as an agreement is often then reached between the lender and the borrower. | Not all of these will lead to actual repossessions, as an agreement is often then reached between the lender and the borrower. |