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| Home repossessions rise to 27,000 | Home repossessions rise to 27,000 |
| (about 1 hour later) | |
| The number of people whose homes were repossessed last year has risen by 21%. | The number of people whose homes were repossessed last year has risen by 21%. |
| The Council of Mortgage Lenders said 27,100 homes, the highest figure since 1999, were taken over by lenders after people fell behind with repayments. | The Council of Mortgage Lenders said 27,100 homes, the highest figure since 1999, were taken over by lenders after people fell behind with repayments. |
| The figure for the UK is more than the 22,400 in 2006, but not as extreme as the CML had forecast. It is still a sharp rise on the 8,500 of 2003. | The figure for the UK is more than the 22,400 in 2006, but not as extreme as the CML had forecast. It is still a sharp rise on the 8,500 of 2003. |
| And the CML warned that the number of repossessions was likely to rise again in 2008. | And the CML warned that the number of repossessions was likely to rise again in 2008. |
| Meanwhile, the numbers of mortgages in arrears rose by 8.6% compared to 2006, it said. | Meanwhile, the numbers of mortgages in arrears rose by 8.6% compared to 2006, it said. |
| 'Wider issues' | 'Wider issues' |
| Another bill would come up which you would be paying on a credit card and you would have to pay the interest on the cards... all that adds up Kevin Allen, who faced repossession Homeowners 'on the rack' | |
| Added pressures on homeowners are expected this year, owing to higher energy bills, food costs and more than a million people coming off fixed-rate mortgages. | Added pressures on homeowners are expected this year, owing to higher energy bills, food costs and more than a million people coming off fixed-rate mortgages. |
| Michael Coogan, CML director general, said: "The number of repossessions is likely to be higher in 2008 as a result of wider issues in the economy and the mortgage funding markets." | Michael Coogan, CML director general, said: "The number of repossessions is likely to be higher in 2008 as a result of wider issues in the economy and the mortgage funding markets." |
| He said that "no-one is necessarily to blame for this" but called for "a fair and reasonable balance of responsibility". | He said that "no-one is necessarily to blame for this" but called for "a fair and reasonable balance of responsibility". |
| Mr Coogan said consumers, their advisers and lenders, and the system of state support, all had a role to play to ensure "repossessions are minimised". | Mr Coogan said consumers, their advisers and lenders, and the system of state support, all had a role to play to ensure "repossessions are minimised". |
| Tighter credit market | Tighter credit market |
| The rise in repossessions was likely to be down primarily to the credit crunch with lenders taking fewer risks with borrowers who were already extending themselves. | The rise in repossessions was likely to be down primarily to the credit crunch with lenders taking fewer risks with borrowers who were already extending themselves. |
| Charities have previously warned about some homeowners using credit cards to pay their mortgages, but with this credit increasingly difficult to come by they have been struggling to meet repayments. | Charities have previously warned about some homeowners using credit cards to pay their mortgages, but with this credit increasingly difficult to come by they have been struggling to meet repayments. |
| Most mortgage possession claims do not end with the owner losing their home, often because the lender comes to an arrangement with the borrower. | Most mortgage possession claims do not end with the owner losing their home, often because the lender comes to an arrangement with the borrower. |
| Repossession figures are still far below levels in the early 1990s | Repossession figures are still far below levels in the early 1990s |
| This was the case with self-employed van driver Andrew, who had to spend time away from work to support his mother after his father died. | This was the case with self-employed van driver Andrew, who had to spend time away from work to support his mother after his father died. |
| This and some expensive repair bills for his van meant he missed some mortgage and council tax payments. | This and some expensive repair bills for his van meant he missed some mortgage and council tax payments. |
| When he was £3,000 in arrears and facing a repossession hearing two weeks later, he sought help from the Consumer Credit Counselling Service (CCCS). | When he was £3,000 in arrears and facing a repossession hearing two weeks later, he sought help from the Consumer Credit Counselling Service (CCCS). |
| They helped him to prepare a budget, separating business and personal costs. He made a proposal at the hearing which was accepted by the lender and he kept his home. | They helped him to prepare a budget, separating business and personal costs. He made a proposal at the hearing which was accepted by the lender and he kept his home. |
| The CCCS has been piloting a repossessions centre with ten advisers since November. | The CCCS has been piloting a repossessions centre with ten advisers since November. |
| It says those people they have suggested sell their homes - rather than have them repossessed - typically have three-quarters of their take-home pay committed to mortgage repayments. | It says those people they have suggested sell their homes - rather than have them repossessed - typically have three-quarters of their take-home pay committed to mortgage repayments. |
| Interest rates | Interest rates |
| Despite the latest rise in repossessions, figures are still much lower than the numbers in the early 1990s - when there were around 80,000 repossessions a year. | Despite the latest rise in repossessions, figures are still much lower than the numbers in the early 1990s - when there were around 80,000 repossessions a year. |
| The CML figures have been released the day after many of the largest - but not all - mortgage lenders announced they would pass on the 0.25% cut in interest rates in full to customers. | The CML figures have been released the day after many of the largest - but not all - mortgage lenders announced they would pass on the 0.25% cut in interest rates in full to customers. |
| These lenders said the cut on the standard variable rate would come in early March. | These lenders said the cut on the standard variable rate would come in early March. |
| On Monday, the Insolvency Service said the number of people declared insolvent in 2007 fell marginally - having peaked the previous year. | On Monday, the Insolvency Service said the number of people declared insolvent in 2007 fell marginally - having peaked the previous year. |
| The number of individual insolvencies dropped by 0.6% last year to 106,645, compared to a record high in 2006. | The number of individual insolvencies dropped by 0.6% last year to 106,645, compared to a record high in 2006. |
| Bankruptcy orders were 2.4% higher than 2006 at 64,480, but Individual Voluntary Arrangements were down 4.9% to 42,165 last year compared to 2006. | Bankruptcy orders were 2.4% higher than 2006 at 64,480, but Individual Voluntary Arrangements were down 4.9% to 42,165 last year compared to 2006. |
| Experts said it would be increasingly difficult for people to borrow their way out of trouble. | Experts said it would be increasingly difficult for people to borrow their way out of trouble. |
| Those who fear getting into trouble with mortgage repayments have been urged to speak to their lender. | Those who fear getting into trouble with mortgage repayments have been urged to speak to their lender. |
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| Are you affected by this story? Send us your comments using the form below: | Are you affected by this story? Send us your comments using the form below: |