Increase in home repossessions in 2008, predicts CML

Next year will see an increase in the number of home repossessions as house prices increase further, the Council of Mortgage Lenders (CML) has warned.

However, the council only forecasts a one per cent increase in house prices in 2008.

Other predictions stemming from the research include an increase in the number of repossessions to 45,000 (0.38 per cent of all mortgages) from its projected total for all of 2007 at 30,000 (0.25 per cent of all mortgages).

Director general of the CML Michael Coogan commented: "We now expect a slower mortgage market next year, although by no means a stagnant one. Most borrowers will cope, but not everyone will escape unharmed from the effects of a slower market."

Consumers may wish to seek legal advice to determine their position in the eyes of the law regarding repossession should they find themselves struggling with mortgage repayments.

In recent weeks, the CML noted a 12 per cent fall in gross mortgage lending in September compared with August.