Mortgage possession orders rise by 24 per cent

Mortgage possession orders were 24 per cent higher in the second quarter of the year in England and Wales, latest government figures have shown.

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Mortgage possession orders totalled 28,658 in the second quarter of the year, a 24 per increase on the second quarter of 2007 and 4 per cent higher than in the first quarter of 2008, the Ministry of Justice figures showed.

Possession orders are made by the courts and specify the date when a homeowner will be required to leave the property.

So far this year, a total of 57,166 possession orders have been made in the county courts, with 18,900 properties being taken into possession.

This compares with 103,508 orders made during the entire year of 1990, when 43,890 properties were taken into possession.

Meanwhile, mortgage possession claims, which represent the first stage in the repossession process, were also up by 17 per cent to 39,078 in the second quarter of 2008 on the corresponding quarter of 2007. However, this figure is unchanged on the previous quarter.

Landlord possession claims during the second quarter of 2008 reached 37,609, up 2 per cent on the same period in 2007.

Meanwhile, the number of actual landlord possession orders made was also up 8 per cent to 28,042 in the second quarter of 2008 on the corresponding period of 2007.

Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), said: "To avoid possessions for those struggling with their finances because of unemployment or relationship breakdown, the next step is for the government to revamp the income support for mortgage interest scheme.

"Peoples' homes are now at risk. It’s time for the chancellor to show his mettle."

Earlier this month, the Financial Services Authority (FSA) also called for lenders, in particular specialist lenders, to ensure they treated customers fairly and explored alternative options to repossession.

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