This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7391772.stm
The article has changed 9 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| Repossession orders climb by 17% | Repossession orders climb by 17% |
| (10 minutes later) | |
| The number of homeowners facing repossession orders after failing to keep up with mortgage payments is up, says the Ministry of Justice. | The number of homeowners facing repossession orders after failing to keep up with mortgage payments is up, says the Ministry of Justice. |
| It says the number of orders made by the courts in England and Wales at an early stage of the repossession process rose 17% in the first quarter of 2008. | It says the number of orders made by the courts in England and Wales at an early stage of the repossession process rose 17% in the first quarter of 2008. |
| There were 27,530 orders made, up from 23,438 in the same period of 2007. | There were 27,530 orders made, up from 23,438 in the same period of 2007. |
| The credit crunch has led to more expensive repayments for new mortgages and a cut in the availability of deals. | The credit crunch has led to more expensive repayments for new mortgages and a cut in the availability of deals. |
| Claims and orders | Claims and orders |
| The number of mortgage possession claims - the first stage of the repossession process when homeowners are threatened with action - was also up. | The number of mortgage possession claims - the first stage of the repossession process when homeowners are threatened with action - was also up. |
| There were 38,688 claims in the first three months of the year compared with 33,344 in the same period of 2007, a rise of 16%. This was also 7% higher than the final three months of 2007. See a regional breakdown | There were 38,688 claims in the first three months of the year compared with 33,344 in the same period of 2007, a rise of 16%. This was also 7% higher than the final three months of 2007. See a regional breakdown |
| This stage comes before mortgage possession orders, when a court grants an order for possession of a home. | This stage comes before mortgage possession orders, when a court grants an order for possession of a home. |
| HAVE YOUR SAYThe government are being urged to help those who are most irresponsibleHugh, UKSend us your comments | HAVE YOUR SAYThe government are being urged to help those who are most irresponsibleHugh, UKSend us your comments |
| Most of these do not end with a property being repossessed, mainly because the borrower presents the court with a case for not proceeding or the lender comes to an arrangement with the borrower. | Most of these do not end with a property being repossessed, mainly because the borrower presents the court with a case for not proceeding or the lender comes to an arrangement with the borrower. |
| The Ministry of Justice figures show that the increase in the numbers of orders made was greatest in Wales - up 26% in the first three months of the year compared with the same period last year. | The Ministry of Justice figures show that the increase in the numbers of orders made was greatest in Wales - up 26% in the first three months of the year compared with the same period last year. |
| There was a 23% rise over the same period in the North West, and increases of 22% in the Midlands, 9% in the South East, 11% in the South West and 1% in the North East. | There was a 23% rise over the same period in the North West, and increases of 22% in the Midlands, 9% in the South East, 11% in the South West and 1% in the North East. |
| The BBC's economics editor Stephanie Flanders says that the number of repossession claims and orders has been rising sharply since 2005, partly because a long period of rising house prices has given lenders an interest in prodding homeowners to sell. | The BBC's economics editor Stephanie Flanders says that the number of repossession claims and orders has been rising sharply since 2005, partly because a long period of rising house prices has given lenders an interest in prodding homeowners to sell. |
| However, she adds that the great majority of these orders will not result in a house being repossessed, but clearly lenders are resorting to the courts more readily than they did in the past. | However, she adds that the great majority of these orders will not result in a house being repossessed, but clearly lenders are resorting to the courts more readily than they did in the past. |
| Tighter household budgets | Tighter household budgets |
| The number of actual repossessions, across the UK and by private lenders only, is shown in figures from the Council of Mortgage Lenders (CML) published twice a year. | The number of actual repossessions, across the UK and by private lenders only, is shown in figures from the Council of Mortgage Lenders (CML) published twice a year. |
| It is important to recognise we are dealing with an entirely different situation in the market from what was experienced in the early 1990s Housing minister Caroline Flint Help for homeowners | It is important to recognise we are dealing with an entirely different situation in the market from what was experienced in the early 1990s Housing minister Caroline Flint Help for homeowners |
| The data for the first half of 2008 will be published in August. The CML predicts that there will be 45,000 repossessions in 2008, up from 27,100 in the previous year. | The data for the first half of 2008 will be published in August. The CML predicts that there will be 45,000 repossessions in 2008, up from 27,100 in the previous year. |
| The CML says there are 11.8 million outstanding mortgages in the UK. | The CML says there are 11.8 million outstanding mortgages in the UK. |
| But Caroline Davey, from housing charity Shelter, told BBC News that banks and building societies were not doing enough to keep repossession figures down after pulling 100% mortgages from the market. | But Caroline Davey, from housing charity Shelter, told BBC News that banks and building societies were not doing enough to keep repossession figures down after pulling 100% mortgages from the market. |
| "I think the lenders have to take a real share of the responsibility here," she said. | "I think the lenders have to take a real share of the responsibility here," she said. |
| "Those lenders have now retracted all of those mortgages. But what they haven't done is put their hands in their pockets to help the many thousands of people who are struggling, having taken on mortgages that they simply can't afford." | "Those lenders have now retracted all of those mortgages. But what they haven't done is put their hands in their pockets to help the many thousands of people who are struggling, having taken on mortgages that they simply can't afford." |
| The number of people missing mortgage repayments is also partly due to the rise in household bills owing to the increasing price of food and fuel. The availability of credit has also been cut. | The number of people missing mortgage repayments is also partly due to the rise in household bills owing to the increasing price of food and fuel. The availability of credit has also been cut. |
| Help for homeowners | Help for homeowners |
| The figures come on the day the government has given details of plans aimed at helping homeowners who are struggling to pay their mortgages. | The figures come on the day the government has given details of plans aimed at helping homeowners who are struggling to pay their mortgages. |
| It said there will be more free legal advice for those at risk of repossession, along with specialist training for debt advice agencies. | It said there will be more free legal advice for those at risk of repossession, along with specialist training for debt advice agencies. |
| Housing Minister Caroline Flint said: "It is important to recognise we are dealing with an entirely different situation in the market from what was experienced in the early 1990s. | Housing Minister Caroline Flint said: "It is important to recognise we are dealing with an entirely different situation in the market from what was experienced in the early 1990s. |
| "The fundamentals of the housing market remain strong with high employment, low interest rates, and long-term demand for homes from first-time buyers." | "The fundamentals of the housing market remain strong with high employment, low interest rates, and long-term demand for homes from first-time buyers." |
| But Shadow Housing Minister Grant Shapps said: "We called on the Government to provide greater debt advice more than 18 months ago and in the last three months David Cameron has urged mortgage lenders to warn borrowers when cheap rates were coming to an end. | But Shadow Housing Minister Grant Shapps said: "We called on the Government to provide greater debt advice more than 18 months ago and in the last three months David Cameron has urged mortgage lenders to warn borrowers when cheap rates were coming to an end. |
| "While we welcome the government belatedly getting on board, it is too little, too late and does nothing to help the 27,000 families who have already experienced repossession." | "While we welcome the government belatedly getting on board, it is too little, too late and does nothing to help the 27,000 families who have already experienced repossession." |
| He said the Prime Minister should ditch Home Information Packs and axe stamp duty for first-time buyers on properties up to £250,000. | He said the Prime Minister should ditch Home Information Packs and axe stamp duty for first-time buyers on properties up to £250,000. |
| Howard Archer, UK economist at Global Insight, said: "A significant number of people have had to stretch themselves to the absolute limit to get into the housing market in recent times as prices soared. | Howard Archer, UK economist at Global Insight, said: "A significant number of people have had to stretch themselves to the absolute limit to get into the housing market in recent times as prices soared. |
"This means that they are particularly vulnerable to any adverse shock to their finances." Regional breakdown of possession orders and claimsRegion Possession claims: Annual change since 2007 Q1 Possession orders: Annual change since 2007 Q1 London -1% -6% Midlands 22% 22% North East 20% 1% North West 24% 23% South East 13% 9% South West 17% 11% Wales 21% 26% Source: Ministry of Justice. Figures are not seasonally adjusted | "This means that they are particularly vulnerable to any adverse shock to their finances." Regional breakdown of possession orders and claimsRegion Possession claims: Annual change since 2007 Q1 Possession orders: Annual change since 2007 Q1 London -1% -6% Midlands 22% 22% North East 20% 1% North West 24% 23% South East 13% 9% South West 17% 11% Wales 21% 26% Source: Ministry of Justice. Figures are not seasonally adjusted |
| Return | Return |
| Have you been affected by the issues raised in this story? Are you facing a house repossession? Has your property been repossessed? Send us your comments using the form below: | Have you been affected by the issues raised in this story? Are you facing a house repossession? Has your property been repossessed? Send us your comments using the form below: |