Sharp rise in repossessions

The Council of Mortgage Lenders have announced that the number of homes repossessed by lenders in the UK increased by 54 percent, standing at 40,000 homes, however it is less than expected and repossessions are predicted to reach over 75,000 homes this year.

Both homeowners and industry experts have called for both lenders and the government to work in collaboration to ensure that they are able to prop each other up and support the housing market and vulnerable homeowners through the current banking crisis.

The government has made certain provisions and will issue legal documents today to allow a Homeowner Mortgage Support Scheme which was first aired in December to go ahead.

Iain Wright MP, the Junior Housing Minister, has aid that the government is doing their very best to make sure that repossession is the last option and that there is advice and help for those who are facing difficulties.

The support scheme has faced a number of difficulties due to legal and administrative complexities, as well as having to change the law regarding the banking act in order to drive the Homeowner Mortgage Support Scheme through.

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