Repossessions show no sign of slowing

10 May 2012

Photo of a mother and child at their door

Figures released today by the Council of Mortgage Lenders reveal the rate of repossessions in the UK remains high, four years after the recession began.

The number of repossessions in the first quarter of 2012 was 9,600 - the same as in the first quarter of 2011.

Shelter’s Chief Executive Campbell Robb said: ‘Although there’s been no increase in repossessions, neither have they gone down and it’s extremely worrying that four years after the credit crunch they’re showing little sign of slowing.

‘With many lenders raising interest rates, hundreds of thousands of struggling homeowners will be worrying how they will cope with an increase in mortgage costs.

Just a one percent increase on a £100,000 mortgage will cost homeowners an average of £55* more each month, and for many this will be enough to tip them into arrears.

‘Sadly, recent changes to Support for Mortgage Interest (SMI) mean that families who face repossession will find there is less support available for them.

‘We’re really concerned that government policy to cut the safety net for homeowners at a time of increasing unemployment will inevitably lead to more households facing the devastation of losing their home.’

Shelter are advising anyone struggling with their housing costs to seek help early. Get advice on paying for your home or find out how Shelter can help.

*Based on a £100,000 repayment mortgage with a 25-year term, calculating the difference between payments at 3.56% (average interest rate, Council of Mortgage Lenders) and 4.56% shows a jump from £509 per month to £565 per month.