Which? issues warning after home repossessions rise

The number of home repossessions by lenders has risen sharply, according to the Department for Constitutional Affairs.

Figures for the three months leading up to September 2005 show 19,687 home repossession orders made in the county courts in England and Wales.

Of those orders, 10,340 were suspended and 55 per cent of actions were entered.

Consumer group Which? attributed the rise to the economic slowdown making mortgages more expensive, as well as high levels of personal debt in the form of personal and homeowner loans, which makes it more difficult for people to make repayments.

Speaking on the Channel Four Evening News programme, Mick McAteer, senior policy advisor at Which?, warned that many people in the UK will not be able to sustain any further economic downturn.

“Their personal finances are stretched to the limit because they are mortgaged to the hilt and they have record levels of unsecured debt as well,” he said.

He also called for unfettered access to legal and financial advice for people facing spiralling debt problems and the imminent shock of losing their homes.

© Adfero Ltd

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