Rise in repossessions revealed

There was an increase in the number of property repossessions last year compared with 2007, it has been revealed.

According to figures produced by the Council of Mortgage Lenders (CML), there were a total of around 40,000 repossessions over the 12-month period. This works out at around one in 290 mortgages.

Meanwhile, one in 64 mortgages were found to be in arrears of 2.5 per cent or more, while one in 53 were in arrears of three months or more.

The CML said that the forecast of 75,000 repossessions over the course of 2009 remains unchanged.

Director-general of the organisation Michael Coogan said: "There seems to be a sharp rise in cases where borrowers are handing back their keys or abandoning their properties.

"We strongly urge borrowers to contact their lender and work with them before taking this step, as there may be other solutions."

Recently, the CML revealed that mortgage lending in the UK fell by eight per cent last month compared with December`s figures.