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Repossession orders on rise
12 May 2008 10:30
The number of repossessions being ordered has risen since the start of 2008, official data has shown, prompting a debate over how much lenders are helping troubled borrowers.
Ministry of Justice statistics have indicated that 38,688 repossession claims were made during the first quarter of this year, up by 16 per cent on the same period of 2007 and by seven per cent on the last three months of last year.
Similarly, the number of repossession orders issued has climbed by 17 per cent year-on-year and by nine per cent from the previous quarter to 27,530, with the proportion of these being suspended staying roughly level at 47 per cent.
Michael Coogan from the Council of Mortgage Lenders responded that borrowers can get out of difficulty by seeking advice, prioritising debts and contacting their provider early, while insisting that lenders are also committed to keeping repossessions low.
Yet the National Consumer Council disagreed, urging lenders to seek out and assist vulnerable borrowers and to offer tailored solutions for those with payment problems, rather than immediately turning to third party debt collection agencies or to the courts.
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