Debt: repossessions climb to 14-year high

According to figures released by the Council of Mortgage Lenders (CML), the number of people falling behind with payments to their mortgage debt and being evicted from their homes has reached a 14-year high, the Telegraph reports.

Although lower than the CML had originally predicted, the figure of 46,000 repossessions seen in 2009 was the highest since 1995 and 15% higher than the previous year.

However, the CML has predicted a `sharp increase` in the number of repossessions and the number of people falling behind with payments to their mortgage debt.

Howard Archer, Managing Director of European Forecasting and Analysis for Global Insight`s Intelligence Group, said: "Home repossessions have thankfully been substantially less than feared so far, which is very good news. Nevertheless, a significant number of homeowners are still at risk.

"Unemployment is relatively high and full-time employment is currently continuing to fall appreciably. Meanwhile, many people have suffered wage freezes or even cuts, debt levels have risen and credit conditions remain very tight. Even if the economy can sustain recovery, activity is unlikely to be strong enough for some time to come to stop full-time employment falling further."

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