Rise in repossessions

12 May 2011

Campbell Robb

Homeowners are suffering the combined pressures of high living costs, frozen wages and VAT rises, Shelter said in response to today’s figures showing repossessions have risen by 15 per cent.

The Council of Mortgage Lenders (CML) has reported 9,100 repossessions in the first quarter of 2011, a rise of 15 per cent from the fourth quarter of 2010.

Campbell Robb, Shelter’s Chief Executive said:

‘These figures show that homeowners are really buckling under the combined pressures of high living costs, stagnant wages and VAT rises. This is only set to get worse as inflation continues to rise, increasing the pressure to raise interest rates soon.

‘Our research shows the number of homeowners struggling to pay their mortgage each month has increased by more than 78 per cent in less than a year.

‘Any rise in interest rates could be the trigger that finally pushes millions of homeowners into a spiral of debt, repossession and ultimately homelessness.’

Mr Robb added: ‘Anyone currently struggling with their mortgage payments should seek advice as soon as possible.’

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