Repossession claims up 16% in Q1

The rapid decline in the availability of mortgages, caused by the credit crunch, and rising food and fuel costs are thought to be key reasons for borrowers falling behind with their monthly payments. The first three months of 2008 saw 38,688 mortgage possession claims, up from 33,344 in the first quarter of 2007. However, most claims do not result in repossession as arrangements can still be made between lender and borrower. Actual repossession figures, published by the Council of Mortgage Lenders (CML), will not be available until August but the CML expects the number of repossessions w...