House Repossessions every 10 minutes

By January 22, 2009House Repossession

It is hard to believe that there is a House Repossessed every 10 minutes in the UK:

July, August, September 2008 = 92 days. In these late summer months there were 13,161 properties repossessed. Assuming they are all repossessed homes this equates to:

1001 repossessed homes per week

143 repossessed homes per day

6 repossessed homes per hour

1 repossessed home every 10 minutes

This staggering figure represents a 92% increase on the same period in 2007, confirmed by the Financial Services Authority.

Such information shows that a significant proportion of the British public are unable to keep up their mortgage payments. This figure could have been higher if it wasn’t for those who had taken the sale and rent back route.

The Government has bailed out banks by the billions or is it trillions now, I am losing count. However, their pathetic approach to help the British public pay off their mortgages has clearly not gone far enough. Lower Bank of England base rates are a good start but the Government needs to force the banks to pass on these savings. The few low mortgage deals available are usually targeted at the fairly rich who can utilise a loan to value (LTV)’s at sub 70% and have a high income.

The City watchdog said borrowers were increasingly falling behind with their mortgage repayments, with numbers rising to 340,000 in the three months to the end of September, a rise of 24 % during the same period a year earlier and 10 % higher than the previous quarter.

Adam Sampson, Shelter’s chief executive, said: “These new figures are not just numbers; they are real tales of real people losing their homes while the rescue schemes announced by the Government recently will help just a fraction of those in trouble.”

Under the Government’s Homeowner Mortgage Support Scheme, home owners facing a loss of income can reduce their monthly mortgage payment for up to two years, while the Government’s Mortgage Rescue scheme allows families (singles?) to either get an equity loan to reduce their mortgage, or sell their home and remain as tenants which is a simple form of sale and rent back.

For those that need to sell their home, maybe they are moving overseas or need to downsize, these figures just put fear into the market and help to decrease the value of property even further. It’s a bad spiral.

2008 saw house prices in the UK take the largest annual decline on record since 1952. The average house value fell by 15.9% to £153,048 according to Nationwide, Britain’s biggest building society.

We also understand that the stock of possession cases remaining unsold has also risen sharply from 12,837  at 30 September 2007 to 27,123 a year later. This is an increase of 111 %.

Melanie Bien, of mortgage brokers Savills Private Finance, said: ‘”It is a sign of the times that repossessions are on the rise as homeowners lose their jobs and struggle with the high cost of living.”

Hopefully if you still have your job and you’re not locked into a high mortgage or your bank finally starts offering lower mortgage interest rate solutions you might keep your house. If home repossession is impending we suggest reading through this site as there are a whole host of informative posts designed to give unbiased solutions to the problems you face.

Could we hear from anyone who has had their house repossessed?