More families face losing their homes

11:38am Saturday 10th May 2008

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A GROWING number of families in the south face losing their homes as the credit crunch pushes up mortgage payments, new figures have revealed.

Records published by the Ministry of Justice show mortgage providers started legal action against 1,043 households in Hampshire and the Isle of Wight in the first three months of this year - a nine per cent increase on the number of repossession claims made during the same period last year.

They included 251 at Southampton County Court (up one per cent), 30 in Winchester (up 76 per cent) and 77 on the Isle of Wight (up 28 per cent).

The number of repossession orders granted by the Southampton court in the first quarter of this year was 192 - up four per cent on last year. In Winchester the number of orders remained at 13.

Nationally, repossession claims rose by 16 per cent to 40,442 in the first three months of this year.

The figures came as the Government announced a £10m package of measures to support homeowners facing difficulties with their mortgage, including expanded access to free legal representation at county courts for households at risk of repossession and funding for more specialist training on debt advice for Citizen Advice Bureau and local authorities.

Chancellor Alistair Darling said: "The fundamentals of the housing market remain strong with high employment and low interest rates. But it is clear from speaking to consumer groups and the mortgage industry that borrowers may be concerned about the impact of the current market conditions.

"That is why it is vital that the Government, working with industry, offers as much support as possible both directly to those people and to the consumer advice groups who can help them."

Shadow Housing Minister Grant Shapps said: "We called on the Government to provide greater debt advice more than 18 months ago and in the last three months David Cameron has urged mortgage lenders to warn borrowers when cheap rates were coming to an end and to consider staggering rate rises.

"While we welcome the Government belatedly getting on board, it's too little too late and does nothing to help the 27,000 families who have already experienced repossession."

Lesley Rose, of Winchester Citizens Advice Bureau (CAB), told the Daily Echo: "We are aware of an increase in the number of repossessions going to court and are getting an increasing number of inquiries concerning debt."