Repossessions on the rise: ministry of justice

The number of homes being repossessed has increased, according to figures from the ministry of justice.

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The number of repossessions has soared by 17 per cent in the first quarter of this year, compared with the same period in 2007, according to figures from the ministry of justice.

More than 27,500 mortgage repossession orders were made in the county court - 9 per cent higher than in the fourth quarter of 2007.

The ministry of justice figures also highlighted that there were more than 37,000 landlord repossession claims in the first quarter of this year - up 4 per cent than the same period last year. There are more than 11m mortgages, according to figures Council of Mortgage Lenders.

The CML which represents lenders said they are committed to keeping the number of repossessions as low as possible.

Michael Coogan, CML director general, said: "No one wants to see repossessions rise. But risk is a part of life and for some households circumstances change and they cannot get back on their feet. However, most people who suffer payment difficulties can get out of trouble by taking good advice, prioritising their debts, and communicating with their lender early."

David Stubbs, Royal Institution of Chartered Surveyors' senior economist, said: "The repossession numbers emphasise the difficulties that some homeowners are having in meeting their mortgage payments. This difficulty may be exacerbated over coming quarters if people who want to re-mortgage find it hard to secure an affordable rate on their new deal. We continue to believe that repossession themselves will increase to around 43,000 in 2008, still well below the high point of 76,000 in 1991."

Citizens Advice added that it wants to see all lenders doing everything in their power to avoid getting to repossession stage. It added that lenders should treat borrowers in arrears fairly and sympathetically.

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