Homeowners facing court action increases 16%

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by Kay Murchie

Figures from the Ministry of Justice show that the number of homeowners facing court action has risen steeply.

The number of mortgage possession claims (the first stage of the repossession process) increased 16% in the first 3 months of this year.

The amount of people threatened with losing their homes was 7% higher than the last quarter of last year.

Analysts have warned today that the number of families facing repossession could double this year.

The credit squeeze has meant more expensive repayments for new mortgages and a massive reduction in cheap mortgage offers.

Furthermore, rising food costs, utility bills and increased fuel costs has meant households are struggling with day-to-day living expenses.

The number of actual repossessions, across the UK and by private lenders only, is shown in figures from the Council of Mortgage Lenders (CML) published twice-yearly.

Figures for the first half of 2008 will be published in August. The CML forecasts that there will be 45,000 repossessions in 2008, up from 27,100 in 2007.

Commenting on the figures, Housing Minister Caroline Flint said she was worried but added the figures were less severe than those in the property crash of the 1990s.