Repossessions rise
Figures showed that repossessions have increased significantly. The total number of homes lost reached 46,760 during 2008, a rise of more than 68 per cent on the previous year.
The FSA also reported that the total amount of loan arrears had increased by just over 10% in the last quarter of 2008 to the previous with 377,000 loan accounts in arrears.
Building societies have also reported a growing number of borrowers who are struggling to meet their mortgage repayments. Paul Broadhead, head of mortgage policy at the Building Societies Association, said that building society’s had an “an unrivalled track record” of giving help to borrowers struggling with their loans and that they should contact their society if they were expereriencing difficulties.
Although the government was trying to help people struggling with debt, they should always approach their lender direct “Every repossession represents an individual tragedy, but borrowers with building society mortgages can be confident that their lender will, if they contact them as soon as possible, develop an individual plan to help them get back on their feet.”
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