Despite the Council of Mortgage Lenders (CML) saying repossessions this year could be 10,000 lower than its original prediction of 75,000, new figures from the Financial Service Authority (FSA) today show repossessions are up 62% in the last year, with a 33% rise in arrears.
Shelter chief executive Sam Younger said: ‘With arrears escalating at an alarming rate, unemployment at its worst for 12 years and interest rates very likely to rise next year, we believe a second, more devastating wave of repossessions could occur within the next two years.
‘The Government and lenders are working hard to help homeowners who are struggling now. But they must not be complacent, and we fear they are not planning adequately for the future.’
Shelter has seen a 250% increase in the number of calls to its free helpline regarding mortgage arrears over the last year, with an 85% increase in the number of calls on repossession problems. Many callers say they fear for their future and are worried they will no longer be able to keep a roof over their heads.
Shelter believes planning for the future and being prepared for a second repossessions wave is the only way we can avoid an overwhelming number of repossessions.
Get advice on repossession:
If you are concerned about repossession, the most effective way to prevent it is to seek advice early:
Shelter offer a mortgage advice line; 0300 3300 515 (all calls charged at local rates) or visit their website for help on-line: http://england.shelter.org.uk/get_advice/repossession
Have your say on this story using the comment section below.