Home repossessions are on the up, according to the latest data.
The number of homes being repossessed by mortgage lenders has increased sharply over the last 12 months, new figures show. According to the Financial Services Authority (FSA), repossessions were up by 71 percent in the second quarter of this year compared with the same period in 2007.
Some 11,054 homes were repossessed after mortgage borrowers failed to keep up with their repayments, the watchdog said. Its data supports claims from numerous organisations about the state of the UK housing market and the financial burden facing many homeowners following increases in mortgage costs and household bills.
The number of mortgage accounts in arrears has also climbed over the last year, with 16 percent more consumers falling behind on their repayments between April and June than there were a year earlier, the FSA's report shows.
This comes after Northern Rock was criticised for the number of repossessions it was carrying out. Debt charities claimed the lender was twice as likely as other banks and building societies to repossess the homes of struggling customers.
However, the Council of Mortgage Lenders has since issued new guidance to ensure that repossession is a last resort. Lenders will be required to demonstrate that they have tried to agree alternative arrangements with borrowers before taking such action.
