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Repossessions rise 12 per cent in three months, according to mortgage lenders

by Dave Keating | November 21, 2008 at 05:22 am

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Reposession rates continue to rise in the UK. A new report released today revealed that reposessions have risen 12 percent in the past three months, as house prices decline at the same time people are unable to meet their mortgage payments. House prices have been dropping at a record rate in the UK.

The figure is expected to get worse amid the economic gloom as unemployment rises and house prices plummet.

In a worrying trend, the CML also said the number of people who fell behind with their mortgage payments also increased.

The number of mortgages in arrears at the end of September was 168,000 - 8 per cent higher than the 155,600 at the end of June.

In an official statement, the CML warned: "Unsurprisingly in a worsening economy, the number of households in arrears by the end of the year is likely to exceed the previous forecast of 170,000."

Despite the warning, the CML still expects about 45,000 repossessions this year.