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News: Massive Rise In Home Repossessions

Wed, 29 Oct 08

The number of repossessions has climbed by 71% over the last 12 months, according to latest statistics from the Financial Services Authority.

The financial watchdog’s figures reveal there were 11,054 more repossessions during the second quarter of 2008.

The number of repossessions could also rise even further in the latter part of the year and into 2009 as the recession affects more struggling homeowners. The FSA figures, which are based on information from 300 mortgage lenders and administrators, show that the number of people falling behind with their mortgage repayments for at least three months has risen by 16 per cent over the year.

Meanwhile the Bank of England’s latest Financial Stability Report is estimating that around 500,000 homeowners have fallen into negative equity as a result of property price falls in the region of 13% over the last 12 months.

The report predicts that a similar fall over the next year will plunge a further 700,000 households into negative equity.

 

By Joe Lepper


See Also House Prices & Trends

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