Figures from the UK's Council of Mortgage Lenders (CML) show that home repossessions rose by 70% in 2005, rising to 10,250 homes.
Despite the apparently large rise, the figures represented the third lowest yearly figure since 1983 and CML reported that the rise was in line with its forecasts. This being the case, the CML said it was confident of its predictions for 2006 and 2007, in which it believes 12,000 homes will be repossessed due to mortgage payment difficulties.
Commenting on the figures, CML director general Michael Coogan said, As expected, arrears and possessions are increasing from what was a phenomenally low trough. Although the scale of increase is notable, the absolute numbers are still extremely small, and set to remain so.
He added. Now would be a good time for borrowers to review their financial commitments. Cutting unnecessary spending, ensuring you have a suitable mortgage deal, and taking out suitable insurance such as mortgage payment protection insurance could make the difference between coping and falling into trouble.