The number of homes thought to be repossessed this year could go through the 100,000 barrier this year. Increased taxation, the rising cost of household bills and heavy personal debts means that repossession orders could hit levels not seen since the last property crash.
Despite the Government asking that the Banks and Building Societies be more lenient and understanding to those in difficulties, the Banks and Building Societies have applied for a record number of court orders seeking repossession, latest figures from the Ministry of Justice reveal.
The highest number was in 1991 when orders peaked at 142,905. Last years total of 95,374 was the highest since then. In the last quarter of 2007, the number rose to 25,008 a 6.3% rise. However, there are fears that the current economic situation mean that this weeks figures for the first quarter of 2008 will rise to their highest level for 17 years as homeowners struggle to make ends meet and make their mortgage payments.
The Council of Mortgage Lenders is more optimistic, predicting that 45,000 homes will be repossessed this year, compared to the the 75,500 actually repossessed in 1991.
If you are experiencing difficulties meeting your mortgage payments, and have a number of debts i.e. credit cards, store cards personal loans, a debt consolidation loan where you could pay of all your debts and replace them with one loan with a low monthly repayment may help. By reducing your expenditure on those debts, it could help free up cash to pay the mortgage repayment.
