Repossession levels have jumped since January

A recent report has shown that repossession levels in the UK have risen by 41% since January of this year, with around 18,900 repossessions taking place within the first six months of the year. This reflects a rise of 41% compared to the previous six months of the year, and a rise of 48% compared to the first six months of last year.

The Council of Mortgage Lenders stated that whilst the rise was a worrying one there were still many people that were keeping up with their mortgage repayments, stating: ‘The number of people facing difficulty needs to be kept in perspective. The good news is that most people are coping well and continuing to pay their mortgages in full, despite the higher costs of food and fuel and the higher mortgage rates now prevailing in the market for those coming off cheaper original deals.’

Officials from the CML added: ‘But it is inevitable that more borrowers’ coping strategies will come under pressure in current conditions than in the unusually benign years of the last decade. That’s why lenders, government and the advice sector are working closely together to minimise the impact on borrowers.’

The CML expects repossession levels to rise further over the course of this year, predicting that they could rise to 45,000. Tighter credit conditions and higher living costs and bills have all resulted in an severe impact on household finances, which has left some homeowners unable to keep on top of mortgage repayments.