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Home repossessions rise in 2006

Home repossession figures rose significantly last year, according to recently released statistics.

Fresh data from the Council of Mortgage Lenders (CML) reveals that home repossessions increased nine per cent during the second half of the year compared with the first.

Some 17,000 repossessions took place throughout the year, a 65 per cent increase compared with 2005, working out at around one in every 650 mortgages in the UK.

The rise in repossessions is being partly blamed on three interest rate hikes since August and there are fears for variable rate mortgage holders that a further base rate rise could be on the way.

"Repossessions are likely to creep up from around 17,000 last year to 19,000 this year and 20,000 next year - higher than the low of 6,030 in 2004, but still only around a quarter of the 1991 peak of 75,540," said Michael Coogan, the CML's director general.

The number of mortgages that are three to six months in arrears fell from 62,920 in 2005 to 59,100 last year.

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31/01/2007 16:19:22

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