UK mortgage re-possession orders in the third quarter soared 66 per cent on the year, the British government announced yesterday, in a sign that record debt levels are putting a strain on many British household budgets.
The British Department of Constitutional Affairs said a total of 19,687 orders were made in England and Wales in the three months to September. Of these, 10,340 were suspended orders while the number of actions entered was up 55 per cent.
An order for mortgage re-possession can be suspended by a court to allow time for arrears to be made good. An order for re-possession can only be made after the lender has entered a claim for such action to a court.
"The increase in mortgage possessions fits with the slowdown in house price inflation," said Alan Clarke, economist at BNP Paribas. "The conclusion is there are still signs of financial stress among home owners."
Britons have borrowed a record amount against their homes in recent years as house prices soared at double-digit rates and interest rates fell to the lowest levels in nearly 50 years.