Shocking rise in home repossession threats

Some 415 families were threatened with having their homes repossessed in the first quarter of this year, compared to 302 in the same period in 2007.

That works out at 34 orders made each week.

The figures, which reflect how the global credit crunch and rising food and fuel prices have hit homeowners, show East Lancashire has seen some of the most dramatic repossession order rises in the country.

Council leaders and a property expert have blamed lenders for handing out mortgages at up to seven times people’s income and some have called on the government to take action.

Burnley Council leader Gordon Birtwistle said: “The figures do not surprise me because of the financial situation that we find ourselves in.

“I am blaming the banks and the government for not stepping in early enough to prevent it.

“People have been led up the garden path and now it has all come crashing down.

“It is a worrying trend and I don’t think it will improve. It will get worse before it gets better.”

Pendle MP Gordon Prentice said the figures reflected problems in the US market but said the Government was taking steps to address the situation.

Ministers announced plans last week to help homeowners, including proposals for free advice for people at risk of having their houses repossessed.

Coun Colin Rigby, leader of Blackburn with Darwen Council, said he blamed ministers and lenders, not the borough’s mortgage payers.

He added: “Who advises these people? If you go along, you assume you are talking to a professional but they have not received professional advice.”

A Burnley property expert said the repossession statistics were “no surprise”.

Denise Powton, general manager of Harris and Moss estate agents, in Manchester Road, added: “People borrowed an awful lot more than they should have done.

“The people to blame are the banks for lending in the first place. People were badly advised.”

Michael Coogan, director general of the Council of Mortgage Lenders, said: “No one wants to see repossessions rise, but risk is a part of life and for some households circumstances change and they cannot get back on their feet.

“However, most people who suffer payment difficulties can get out of trouble by taking good advice, prioritising their debts, and communicating with their lender early.”

The Government figures relate to mortgage repossession orders granted by courts and not all are expected to be carried out by lenders.

FACTS AND FIGURES.

Burnley County Court issued 71 repossession orders in the first quarter of this year, an increase of 48 per cent compared to 48 in the same period last year.

Blackburn’s court issued 118 orders, up 22 per cent from 96.

Accrington’s granted 66 up 22 per cent from 52.

Nelson’s issued 67, up 49 per cent from 45.

Rawtenstall’s granted 93 up 52 per cent from 61.

The place with the most mortgage repossession orders was Liverpool with 578 granted in 2008’s first quarter.

Haverfordwest, South Wales, registered the largest increase since last year with 248 per cent more orders granted.

Almost 27,000 orders were issued by courts in England and Wales during January to March.

Around 76,000 homes were repossessed during the housing crisis in 1991.

By Chris Hopper