22 Feb 2008 11:53:10 | David Miles
The number of people in the UK whose homes are being repossessed
is on the increase. Recent (October 2005) figures show that
nearly 20,000 mortgage repossession orders were issued during
the past three months in England and Wales. This represents a
66% increase since last year.
Repossession orders have been on the increase since early 2004
and mortgage lenders have blamed rising repossessions on the
five interest rate rises that took place in the UK between
November 2003 and August 2004.
There are various reasons why repossessions are on the increase.
In many cases, as rising interest rates have pushed up the cost
of mortgage repayments, people have started to struggle to keep
up.
In other cases, people who have been made redundant or who have
been unable to work due to long-term sickness or injury have
found themselves unable to pay their mortgage each month.
Once you start to fall behind with your mortgage repayments and
build up mortgage arrears (often through no fault of your own),
there is a risk that the mortgage company may try to repossess
your home.
The threat of repossession can be extremely worrying and is
something that you certainly shouldn't ignore. But because of
the stigma surrounding repossession, many people try to avoid
facing up to the fact that their home may be repossessed and so
put off talking to anyone about it.
However, in a lot of cases, if your mortgage lender is
threatening you with repossession there may be steps you can
take to prevent the loss of your home.
So long as you have some equity in your property and that equity
is worth more than the amount you owe the mortgage company, then
a remortgage could allow you to free up sufficient funds to pay
off the lender and avoid your property being repossessed.
Because not many banks and building societies will be willing to
offer a remortgage to someone who has existing arrears or is
facing repossession, it is important to seek specialist advice
right away so as you don't waste valuable time approaching
lenders who can't or won't help you.
To find out more, visit http://www.cleanslatemortgages.co.uk/repossession
s.shtml for information on how you could stop repossession.
About Author :
David Miles is the webmaster of Clean Slate Mortgages, a website which
includes information on how to stop repossession.
