Repossessions jump 41% in Q1

Thu 7 Aug 2008
LONDON (ShareCast) - The first three months of 2008 saw repossessions surge 41%, raising fears that lenders are being quick to move on those falling behind with their payments.

Repossessions jumped to 9,152 in the first quarter, up from 6,471 a year earlier, according to the Financial Services Authority.

It found that over 300,000 people were in arrears during the period, nearly 40,000 more than at the same time last year. The number of new cases was little changed at 54,000.

The Council of Mortgage Lenders expects around 45,000 repossessions during the year as a whole versus 75,500 when the recession of the early nineties was at its worst.

The financial watchdog called on firms to be flexible, to make sure they consider customers' individual circumstances and to use court action as a last resort.

"As our data shows in these current market conditions more people are struggling to meet their mortgage payments and it is vital that firms treat them fairly," said FSA director Lesley Titcomb.

Source: http://uk.biz.yahoo.com/080806/214/i4f9i.html