Alarming rise in home repossessions

Posted under General by Michael

Home repossession has reached highest level of past 12 years as more than 100 borrowers are losing their homes in repossession each day. The number is up by 48% in last 6 months. Experts are worried that rising cost of living is likely to hit more families. The situation is getting worse and more number of borrowers is failing in making payment of mortgage.

According to the Council of Mortgage Lenders (CML), 18,900 homes were repossessed in the last six months which is 48% more than in the same period last year. The borrowers who had re-mortgaged their homes to manage payments are the hardest hit due to dearth of affordable mortgage and the credit crunch.

The number of borrowers with arrears of more than three months rose from 120,800 in June 2007 to 155,600 in June 2008. According to director general CML, Michael Coogan, the situation is worse compared with the past decade and borrowers would face more trouble in the coming months. He claims that lenders also suffer loss on account of repossession.