New figures spell catastrophe for homeowners
February 6, 2006 11:46 AM
The latest statistics from the Department of Constitutional Affairs (DCA) show a huge rise in the number of mortgage possession procedures issued in county courts. Data from the Council of Mortgage Lenders (CML) show a huge rise in actual repossessions, and figures from the DTI show a huge rise in personal insolvencies.
Commenting on these figures, which were all published today, Vince Cable MP, Liberal Democrat Shadow Chancellor, said: "These figures all show very worrying trends. While the housing market as a whole appears to have strengthened in recent months there is a significant minority of people who are finding it increasingly difficult to cope financially.
"The pincer movement of rising unemployment and record levels of personal debt is spelling catastrophe for many hard working families."
Commenting on the mortgage possession procedure statistics released from the DCA, Mr Cable, added: "While they remain below the levels seen in the early 1990s there are clearly big problems ahead. While not all of the mortgage possession actions entered into will result in repossession they give a strong indication of the extreme difficulties facing many households."
Commenting on the CML figures he said: "These figures, while not of the same magnitude as the court statistics, are a source for grave concern, particularly in light of the rising number of mortgages that are more than 12 months in arrears."
On the DTI Individual Insolvency figures, Mr Cable continued: "Last year alone there were nearly a quarter of a million calls to the National Debtline, and the Citizen's Advice Bureau dealt with over a million problems relating to personal debt. With the cost of servicing debt now close to the high seen in the early 1990s urgent action is required.
"These figures demonstrate the complete absence of an adequate safety net in the mortgage market. Banks and building societies need to ensure that when individuals take out mortgages they are fully aware of the risks that are involved and of the relevant insurance products."
