Repossession figures set to soar

12 April 2012

Figures showing a jump in repossessions last year are set to be released as it emerged a Government scheme designed to prevent them has yet to help anyone.

The Council of Mortgage Lenders will release statistics showing both the number of properties that were repossessed during the final three months of last year and a total for the whole of 2008.

Commentators have predicted that about 42,000 homeowners lost their properties in 2008 after failing to keep up with their mortgage.

The Ministry of Justice is also releasing figures showing the number of repossession orders made by courts in England and Wales during the final quarter of 2008.

The data is being released amid claims the Homeowner Mortgage Support Scheme, announced in December, has still not been implemented by lenders, who are seeking more clarity and guarantees from the Government.

ITV News reported the Government would only be issuing legal documents on Friday, finally allowing the scheme to go ahead.

Lenders feared the scheme would only defer a "repossessions spike" to 2011 and burden homeowners with unmanageable payments to catch up.

Announced by Prime Minister Gordon Brown to the Commons, he said it would allow households with loans of up to £400,000 to defer interest payments for up to two years if they suffered a sudden and temporary loss of income.

At the time, Mr Brown told MPs the country's eight biggest lenders had all agreed to sign up.

Adam Sampson, chief executive of Shelter, said: "The Government has been guilty of rushing to announce schemes before the details are finalised. What that does is to give many people who are facing repossessions hope that something immediately will happen and in practice help is in some cases six months or more away."

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