UK housing market in meltdown? The number of house reposessions jumped 71% in the three months to June 2008. It’s not easy out there right now and many people are finding it ever more difficult to keep up with their mortgage payments.
Given the current state of the stock markets with banks getting bail outs from the taxpayer in return for tightening their practices, it is also perceived that they are more likely to seek house repossession rather than try to work out a plan with the mortgagee.
I read a report in the Guardian last week in which the author stated that loan companies and credit card companies are also invoking charge orders from later payers of unsecured debt, These charge orders mean the creditors can seek from a court an order for the debtor to sell their house in order to pay back what the owe. It seems that the Nationwide and Northern Rock are the ones who have been most active in excercising their rights to use charge orders.
Sadly, charge orders aren’t reported in the Council of Mortgage Lenders (CML) repossession figures so in actual fact the number of house repossessions may indeed be higher than reported.