Reposessions on the rise
UK's people who are losing their home due to repossessions are on the up
The bank of England reports indicate that the property prices in the UK were declining faster than their UK counterparts
The number of repossessions in the second quarter of the year was 11,054, up 71% compared with a year earlier.
Recently reports indicate repossessions are up by more than 70% compared to the same time last year. The number of mortgages going into the red has been steadily going up.
Not all of these will lead to repossessions, and homeowners are urged to contact their lender as soon as they find themselves struggling to make repayments.
The FSA data backs up other accounts of the state of the housing market, which indicate that the number of new home loans has dropped and banks are being more cautious about who to lend to.
The Council of Mortgage Lenders has estimated that 45,000 homes in the UK will be repossessed in 2008, up from 27,100 last year.
Gross lending fell by 26% in the second quarter of the year compared with a year earlier.
This is the second time that the FSA has released figures of this kind, which are based on data from 300 regulated mortgage lenders and administrators.
It started collating the figures at the start of 2007.
The FSA said that "significantly fewer" new loans had been given to people who could only offer a deposit of 10% of the value of the property. This was down from a peak of 15% of new lending in early 2007 to 10% this time.
Loans to borrowers with a chequered credit history represented 2.1% of new lending in April to July, compared with 3.4% a year earlier.
The Bank's Financial Stability Report has estimated that 500,000 homeowners in the UK are in negative equity as a result of a 13% fall in UK property prices since their peak in October last year.
It predicted that this number would rise to 1.2 million - one in nine UK homeowners - if house prices dropped by another 15% over the coming months.
A Bank spokesman said this was only a "gauge" were house prices to fall further, but it would be more optimistic than some other predictions, which have suggested 2.5 million homeowners could face negative equity.
When mortgage debts are higher than the value of the house, the mortgage goes into negative equity, if the owner is looking to move out then this can be a major problem.
If you need to sell or move and are having issues, we can help. To read in more detail about how much cash we can save you, please see our sell property fast page.
Want to claim your free valuation or ready to sell right now? Click here to proceed!
