Repossession Orders rise by 24%

Homeowners in England & Wales who face having their homes repossessed after falling behind with their mortgage repayments has risen by 24%.

Figures from the Ministry of Justice show 28,658 orders were made by the courts in England & Wales from April to June this year. This is up 24% on the same period in 2007 and up 4% from the first quarter of 2008.

Repossession orders come early in the process and do not necessarily end in repossession. A deal can very often be agreed between the mortgage lender and the borrower.

However, the figures released for actual repossessions across the UK have showed a huge increase. Last week the Council of Mortgage Lenders (CML) reported the number of actual repossessions rose to 18,900 the first six months of this year. This is up 48% for the same period of last year.

The credit crunch is responsible for more expensive mortgages which borrowers are finding more difficult to keep up with along with other rising household bills.

The charity Shelter has also reported that the number of people coming to them for help has risen by 55% and they are seeing more ordinary hardworking people seeking their help.