If you are in danger of facing repossession at the moment then you are not alone, as there has been a sharp increase in the level of repossessions of late, with more and more homeowners losing their homes. In fact, figures have recently been released that show the level of repossessions for the third quarter of the year up to end of September increased by around 12 percent, to around 11,300. The figures have been released by the Council of Mortgage Lenders.

The fall in house prices coupled with higher living costs, high inflation, and high borrowing costs has left an increasing number of consumers struggling to keep on top of their mortgage repayments, and this in turn has resulted in a higher level of repossessions, with around one hundred and twenty five families a day losing their homes to repossession for that period. There was also a rise in the number of borrowers in arrears, and an increase in the number of properties going under the hammer at auction.

One auction professional recently stated: ‘The dramatic rise in repossessions at auction is the combination of two factors, the slowing housing market in the UK and the increasing desire of Banks and Building Societies to liquidate their repossessed stock.’

As the recession continues to take a hold in the UK, it is though that the situation could get even worse, with many expected to lose their jobs, which would further impact upon the ability of many homeowners to keep up with their mortgage repayments.

Professionals from the mortgage industry have urged consumers to ensure that they contact their lender to try and reach some sort of solution before things get as far as repossession if they find that they are struggling to make their mortgage repayments. An official from the CML said: ‘Most borrowers who face payment problems successfully keep their home by working with their lender.’

He added: ‘The Government has taken some helpful steps towards targeted support for some of the most vulnerable households, but with a worsening economy now needs to make it a priority to go further. ‘Increased help with housing costs is needed for a wider range of borrowers facing unforeseen repayment difficulties where there would otherwise be little prospect of early improvement. Next week’s Pre-Budget Report should concentrate on making much more assistance with mortgage payments available for people whose income is reduced, as help is currently far too limited.’

He went on to state: ‘Looking ahead, conditions in the wider economy suggest a worsening picture for mortgage arrears, however carefully lenders handle their treatment of borrowers in difficulty. But while lenders cannot change the underlying causes of financial difficulty, such as unemployment, they can make sure that their response to borrowers is constructive and seeks to avoid repossession wherever other solutions can be found.’

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