Money News
6th August 2008
Repossessions up over 40%
Higher mortgage payments and the soaring cost of living has fuelled a surge in repossessions, new figures have shown.
According to data from Financial Services Authority, (FSA), 9,152 people have had their homes seized by a lender during the first quarter.
This represents an increase of 41 per cent from the previous period, when 6,471 homes were repossessed.
A rise in the number of mortgage holders in arrears was also recorded, with the total number of people behind on their payments standing at 300,000.
The rise prompted the FSA to call for lenders to adopt a more sympathetic approach to borrowers who are struggling.
Lesley Titcomb, a director at the FSA, said: "In these current market conditions more people are struggling to meet their mortgage payments and it is vital that firms treat them fairly.
"This means paying attention to their individual circumstances and not repossessing their homes when there may be an alternative solution. Repossession has to be the last resort."
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