Where is mortgage support scheme?
Updated on 20 February 2009
Figures show a sharp rise in the number of homes repossessed last year, so where's the help for homeowners?
The government has published an update on its homeowner mortgage support scheme, which Gordon Brown announced as long ago as the start of December.
According to figures from the Council of Mortgage Lenders, 40,000 homes were repossessed in 2008, a 54 per cent rise on the previous year.
Nearly 29,000 people are more than three months behind with their repayments, a 49 per cent increase on the previous three month period.
The Council of Mortgage Lenders (CML) said that around 10.400 properties were repossessed in the fourth quarter of 2008 alone, down from 11,100 repossessions in the previous quarter but up from 6,900 in the same quarter of 2007.
Although the figure is 5,000 less than predicted, it shows a sharp increase compared to 2007 when 25,900 properties were repossessed, and the Council predicts that a further 75,000 people will lose their homes in 2009.
The Ministry of Justice also released figures today showing that the number of mortgage possession orders made by county courts in England and Wales in the last three months of 2008 were also 14 per cent higher than the same period in 2007, reaching 29,095 orders.
County court repossession orders by region:
- London - 15,726
- Midlands - 23,711
- North East - 17,522
- North West - 18,644
- South East - 21,004
- South West - 9.983
- Wales - 7,706
The CML, which represents around 98 per cent of mortgage lenders, also reports that one in every 64 mortgages are in arrears of 2.5 per cent or more.
CML director general, Michael Coogan, commented: "There seems to be a sharp rise in cases where borrowers are handing back their keys or abandoning their properties.
"We strongly urge borrowers to contact their lender and work with them before taking this step, as there may be other solutions. Borrowers are still liable for their debt, even if they leave the property, so working through their problems is much more likely to be in their best interests."
Ten county courts issuing most repossession orders
- Birmingham - 4,280
- Liverpool - 2,332
- Bow, London - 1,795
- Nottingham - 1,743
- Croydon - 1,679
- Cardiff - 1,512
- Edmonton, London - 1,487
- Manchester - 1,449
- Walsall - 1,401
- Teesside - 1,391
