Alarming rise in Home repossessions

Posted under General by Michael

Home repossession is on rise in England and Wales. First quarter of 2008 witnessed 16pc rise in the claims compared to same quarter last year. It is likely to touch the level witnessed in nineties.
During 1990, the number of claims issued was 1,45000. It rose to 1,86649 in 1992.

According to Ministry of Justice report, 39,000 mortgage possession claims have been issued so far. This is 7pc higher compared to fourth quarter of 2007. It also reports 9pc rise in the mortgage repossession orders.

The report indicates that number of landlord possession claims has reached record figure of 37,221, which is 4pc higher than first quarter of 2007.

To ease out the situation, Government announced that it will provide free legal advice to the homeowners and will also facilitate payment of mortgages.

The chairman of the Building Societies Association (BSA) has serious apprehensions about recovery of mortgage markets in the next 2 years.

Iain Cornish, while addressing home owners at BSA conference in Manchester, cautioned that they will be operating very differently once global and domestic markets recover.

Mortgage lenders have already initiated steps to safeguard their interests. Home loan offers have been cut down. They do not intend making interest rate cuts, and have enhanced minimum deposit amount for the deals. 

The Bank of England’s decision to hold interest rate at 5% will be of no help to the house-owners.