Home repossessions double as mortgage costs rise
25 Nov 2022
Home repossessions have almost doubled as rising costs force borrowers to fall behind on mortgage payments, according to official figures published by the Ministry of Justice (MoJ).
There were 744 mortgage repossessions by bailiffs in England and Wales between July and September this year, more than 90% higher than the same period last year, according to the data.
Possession claims by lenders, the first step in the repossession process, surged by almost a third from 2,832 to 3,680, while warrants have jumped by 157%.
The number of landlords attempting to evict tenants has also increased, reaching a record high after the pandemic-related eviction ban ended. Mortgage repossessions are still at roughly half the level seen before the pandemic, however the MoJ said they had increased 'significantly' in the past year.
Karen Noye of mortgage broker Quilter said: 'Historically, periods of high interest rates have coincided with an increase in repossessions due to people's monthly payments becoming unaffordable. With high energy and food prices, some people will start to struggle to heat their homes and eat while affording their mortgage.'