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| Repossessions rise 'set to go on' | Repossessions rise 'set to go on' |
| (10 minutes later) | |
| Repossessions in Wales are the highest for eight years and the rise is expected to continue, a BBC Wales investigation has found. | Repossessions in Wales are the highest for eight years and the rise is expected to continue, a BBC Wales investigation has found. |
| Almost 3,000 repossession were granted in Wales in the first half of 2007 - up 30% on last year. | Almost 3,000 repossession were granted in Wales in the first half of 2007 - up 30% on last year. |
| Housing industry observers said high property prices and rising mortgage costs will fuel repossession figures. | Housing industry observers said high property prices and rising mortgage costs will fuel repossession figures. |
| The Council of Mortgage Lenders predicted that any rise in repossessions would be a modest one. | The Council of Mortgage Lenders predicted that any rise in repossessions would be a modest one. |
| The Week In Week Out programme looked at the housing market in Wales - where house prices have trebled in a decade - as it is hit by falling property prices and five interest rate rises since August last year. | The Week In Week Out programme looked at the housing market in Wales - where house prices have trebled in a decade - as it is hit by falling property prices and five interest rate rises since August last year. |
| At the end of the day, it's not that we didn't want to pay the mortgage - it just went, just spiralled out of control. June Purchase | At the end of the day, it's not that we didn't want to pay the mortgage - it just went, just spiralled out of control. June Purchase |
| Mick McAteer, a former policy adviser for Which? and who now heads a think-tank on financial inclusion, said he expects repossessions to be fuelled by a "perfect storm" of high property prices and rising mortgage costs. | Mick McAteer, a former policy adviser for Which? and who now heads a think-tank on financial inclusion, said he expects repossessions to be fuelled by a "perfect storm" of high property prices and rising mortgage costs. |
| He said: "There are a large number of people who are actually quite vulnerable to any change in their financial circumstances. | He said: "There are a large number of people who are actually quite vulnerable to any change in their financial circumstances. |
| "The amount of money they owe means that they are at their absolute limit and if they do have a change in their financial circumstances I am afraid they will be tipped over the edge." | "The amount of money they owe means that they are at their absolute limit and if they do have a change in their financial circumstances I am afraid they will be tipped over the edge." |
| The programme found the growth in sub-prime lending - higher-interest mortgages to people with poor credit records - is contributing to those being caught out. | The programme found the growth in sub-prime lending - higher-interest mortgages to people with poor credit records - is contributing to those being caught out. |
| Les Cooper, of Flintshire Citizens Advice Bureau, said as recently as three years ago he would recognise most of the mortgage firms involved in repossession hearings he attended. | Les Cooper, of Flintshire Citizens Advice Bureau, said as recently as three years ago he would recognise most of the mortgage firms involved in repossession hearings he attended. |
| June and Ken Purchase were evicted from their home in September | June and Ken Purchase were evicted from their home in September |
| "But now when I go to court and I look at the listings, there are huge numbers of sub-prime lenders in almost the majority of the listings," he said. | "But now when I go to court and I look at the listings, there are huge numbers of sub-prime lenders in almost the majority of the listings," he said. |
| "And there are companies there I've never heard of. They are popping up like mushrooms." | "And there are companies there I've never heard of. They are popping up like mushrooms." |
| The programme found that, taking into account their market share, sub-prime lenders repossess 10 times more properties than high street mortgage companies. | The programme found that, taking into account their market share, sub-prime lenders repossess 10 times more properties than high street mortgage companies. |
| June and Kenneth Purchase were evicted from their home at Llanharan, near Bridgend, in September. | June and Kenneth Purchase were evicted from their home at Llanharan, near Bridgend, in September. |
| Two years ago they re-mortgaged their house with a sub prime lender. They also took out a loan for £25,000 with another sub-prime lender, not realising that the total they would have to repay would be £59,000. | Two years ago they re-mortgaged their house with a sub prime lender. They also took out a loan for £25,000 with another sub-prime lender, not realising that the total they would have to repay would be £59,000. |
| 'Arrears and possessions' | 'Arrears and possessions' |
| When interest rates went up they began to struggle, and when Mr Purchase lost his job they could not meet their mortgage and loan repayments. | When interest rates went up they began to struggle, and when Mr Purchase lost his job they could not meet their mortgage and loan repayments. |
| Mrs Purchase said: "At the end of the day, it's not that we didn't want to pay the mortgage - it just went, just spiralled out of control." | Mrs Purchase said: "At the end of the day, it's not that we didn't want to pay the mortgage - it just went, just spiralled out of control." |
| The programme reports that in 2006, Citizens Advice Bureau in Wales saw 20% more debt cases than in 2005. The total amount owed was £76m, much of it to sub-prime lenders. | The programme reports that in 2006, Citizens Advice Bureau in Wales saw 20% more debt cases than in 2005. The total amount owed was £76m, much of it to sub-prime lenders. |
| Bernard Clarke, of the Council of Mortgage Lenders, said the organisation was looking at "sub-sectors of the market" to predict possible repossession figures. | |
| He said: "We would expect there to be a rise in arrears and possessions, but it will be, we hope, a relatively modest rise in arrears and possessions. | He said: "We would expect there to be a rise in arrears and possessions, but it will be, we hope, a relatively modest rise in arrears and possessions. |
| "We don't think we are going back to the circumstances that we saw for instance, in the early 1990s." | "We don't think we are going back to the circumstances that we saw for instance, in the early 1990s." |
| Week In Week Out is broadcast on Tuesday 23 October at 2235 GMT on BBC1 Wales and repeated on Thursday 25 October at 2130 GMT on BBC2W | Week In Week Out is broadcast on Tuesday 23 October at 2235 GMT on BBC1 Wales and repeated on Thursday 25 October at 2130 GMT on BBC2W |