92% increase in home repossessions in one year
During the third quarter of last year the number of people that were losing their homes nearly doubled, according to recent reports.
The figures show that in the three months up to September, which was the third quarter of the year, there were 13,161 properties that were repossessed, and this reflected an increase of around 92 percent compared to the same period a year earlier.
The data comes from the Financial Services Authority, which states that the number of people that fell behind on their mortgage repayments increased to 340,000. This was a rise of 24 percent on the year and an increase of 10 percent compared to the previous quarter according to the figures.
According to the Financial Services Authority there has been an increase in the number of people that have arrears for more than one and a half percent of their outstanding mortgage debt. This is said to have increased each quarter for the last five quarters, with a rise of around 4 percent each quarter according to the report.
There was also an increase in the number of repossessed homes that remained unsold, as the number of home being repossessed increased sharply compared to only a slight rise in the number of repossessed home that were actually being sold on by lenders.
Figures from the Council of Mortgage Lenders and other industry groups have also shown an increase in the number of people falling behind with mortgage repayments as well as the drop in property sales. In the third quarter of last year around 11,300 homes were said to have been repossessed by the Council of Mortgage Lenders, and this reflected an increase of 12 percent compared to the previous quarter.
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