Birkenhead repossessions rise by 22%

Feb 25 2009 Birkenhead News

REPOSSESSIONS in the Birkenhead area rose by 22% in 2008.

In total, 777 homes were recovered by lenders as a result of mortgage repossession orders made by courts.

The rise, almost in tandem with the Merseyside and north west average of 23%, show the economic downturn is biting and hitting homeowners hard, despite drops in the Bank of England’s interest rate.

The numbers, calculated by the Council of Mortgage Lenders (CML), reveal a national rise of 54%, putting the cumulative total of repossessions up to 40,000 by the end of the year, or one in every 290 mortgages.

But the organisation also revealed that those figures were 5,000 lower than expected.

CML attribute this to efforts made by lenders to ensure repossession remains a last resort.

CML director general Michael Coogan said: “Despite the upward pressure on mortgage arrears and repossessions arising from the problems in the economy and rising unemployment, both lenders and Government are continuing to find more ways to help more people stay in their homes.

“But 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. “Borrowers are still liable for their debt, even if they leave the property, so working through their problems is much more likely to be in their best interests."