Repossessions on the rise

The number of repossessions is increasing, new figures show.

Mortgage possession claims rose to 38,688 in the first quarter of 2008 compared with 33,715 for the equivalent period in 2007, Ministry of Justice figures have revealed.

In all, 47 per cent of these orders were suspended as homeowners were given more time to catch up on mortgage arrears, but the figures remain the highest since the early 1990s.

Howard Archer, chief UK and European economist at Global Insight, said the situation was on course to "deteriorate significantly further".

This same view was held by the Royal Institution of Chartered Surveyors, which said the situation "may be exacerbated over coming quarters if people who want to re-mortgage find it hard to secure an affordable rate on their new deal".

Given the difficulties faced by those with mortgages, some may decide to opt for the self build method, in order to keep their costs down and reduce the risk of getting into difficulties with their borrowing, either soon or at any future time.


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