Repossessions up 12% in third quarter

The number of home repossessions rose by 12% in the third quarter of 2008, according to the Council of Mortgage Lenders (CML), as increasing numbers of homeowners struggled to repay their mortgage debts.

The number of borrowers in arrears also rose by 8% in the quarter – suggesting more homeowners may face the threat of repossession in the future due to mortgage debts.

Repossessions have risen significantly over the last year, as the credit crunch and rising inflation have put pressure on many homeowners’ finances – pushing many into debt.

A spokesperson for debt management company Gregory Pennington said: “The sharp increase in repossessions over the last year has been worrying, and highlights the real need for homeowners to take care of their debts early, to prevent them from becoming unmanageable.

“There are a number of debt solutions, such as debt consolidation and debt management plans, that may be able to reduce a household’s monthly outgoings – and that could be crucial for families facing repossession due to mortgage debts.”

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.