Home repossessions up 54%

The number of people losing their homes rose by 54% in 2008, while the number in arrears rose by 70%, according to new statistics from the Council of Mortgage Lenders (CML).

According to the CML, 40,000 homes were repossessed last year – 5,000 fewer than had been forecast. However, 219,000 people were more than three months behind on their monthly payments at the end of 2008, up from 127,500 at the end of 2007.

The CML has also predicted that 500,000 homeowners could fall three or more months behind on their mortgage payments this year.

A spokesperson for debt management company Gregory Pennington warned homeowners to do whatever they can to protect their finances as the recession takes hold. "This year is likely to be difficult for many people, but there are a number of things people can do to protect their finances, such as budgeting, buying cheaper brands and switching energy providers.

"Above all, homeowners should contact their lenders at the first sign of trouble with mortgage debts. Lenders will often accept temporarily reduced payments if they think it will help in the long term."

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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.