Repossessions 'up 12%'

New figures reveal that the number of homes being repossessed has increased by 12 per cent.

The Council of Mortgage Lenders (CML) has released quarterly data for the three months ended September 2009, which shows 11,300 were repossessed during that period - 12 per cent more than the 10,100 in the corresponding quarter of 2007.

Commenting on the latest data, CML director general Michael Coogan said the council is "absolutely committed" to ensuring that repossession is only ever a "last resort".

Mr Coogan claimed most borrowers - be it self build or otherwise - who face payment problems manage to keep their home by working with their lender.

He advises anyone worried about mortgage payments to contact their lender at the "earliest opportunity".

Despite the increase, the CML reported that it expects the total number of repossessions this year to be around 45,000, the same figure it forecast in October 2007.

Gordon Brown has claimed lenders should only seek to repossess a home as a last resort.