Insurance News Archive

Repossessions doubled at end of 2008

Repossessions almost doubled in the final quarter of 2008, rising by 92 per cent, according to the latest figures.

Statistics from the Financial Services Authority (FSA) show mortgage lenders repossessed 13,161 homes between September and December last year compared to the same period in 2007, when 7,000 properties were seized.

There has been a significant rise in the number of people struggling to pay their mortgages, with 340,000 homeowners' loan accounts in arrears during the period, an increase of nearly a quarter compared to the last three months of 2007, the FSA reports.

Mortgage lenders are being much more conservative, with loans to borrowers with a poor credit history representing just 1.5 per cent of new lending, compared to 3.5 per cent the year before.

"These new figures are deeply troubling but come as no great surprise in the current economic climate," says Sue Edwards, head of consumer policy at Citizens Advice.

23 Jan 2009