Repossessions have risen again, although the mortgage industry insists numbers are in line with expectations.
The number of homes being repossessed in the UK increased by 12 percent during the third quarter of the year, according to new figures from the Council of Mortgage Lenders (CML). However, the organisation insists that repossession remains a last resort.
Its data shows that in the three months to the end of September, 11,300 properties were repossessed - up from 10,100 in the three months previous. This equates to 0.1 percent of all mortgaged properties, the CML calculates.
Despite the increase, the organisation claims total repossessions for 2008 are in line with its forecasts. It expects 45,000 homes to have been seized by mortgage lenders by the end of the year as homeowners struggle to keep up with their loan repayments.
Michael Coogan, the director general of the CML, says lenders remain committed to ensuring that repossession is a final course of action and are working with borrowers facing payment difficulties to help them remain in their homes.
However, he warns: "Looking ahead, conditions in the wider economy suggest a worsening picture for mortgage arrears, however carefully lenders handle their treatment of borrowers in difficulty."
Indeed, the figures show that during the third quarter, the number of mortgages that were at least three months in arrears increased from 1.33 percent to 1.44 percent.
The Unite union is calling on the government to introduce a freeze on repossessions to protect some of the country's most vulnerable homeowners during the recession.
