Home repossessions double as mortgage costs surge for families

HOME repossessions have almost doubled as crippling costs causes borrowers to fall behind on mortgage payments, new data have shown.

There were 744 mortgage repossessions by bailiffs in England and Wales between July and September this year, 90pc higher than the same period last year, according to official figures published by the Ministry of Justice (MOJ).

Possession claims by lenders, the first step in the repossession process, surged by almost a third from 2,832 to 3,680, while warrants have jumped by 157pc.

The number of landlords attempting to evict tenants has also jumped, reaching a record high after the eviction ban introduced during the pandemic ended.

Mortgage repossessions are still at roughly half the level seen before Covid. However, the MOJ said they had increased significantly in the past year.

Karen Noye, of mortgage broker Quilter, said: “Historically, periods of high interest rates have coincided with an increase in repossessions due to people’s monthly payments becoming unaffordable. With high energy and food prices some people will start to struggle to heat their homes and eat while affording their mortgage.”

The escalating affordability crisis was echoed by figures published by UK Finance, the banking trade body, which warned there were almost 29,000 homeowners with arrears of 10pc or more of their outstanding mortgage between July and September – a quarter higher than the same period in 2019. Meanwhile, in the private rental sector, the number of landlords trying to reclaim their properties through the courts climbed to a record high.

Possession claims by private landlords rose to 6,823 in the three months between July and September, the highest quarterly figure ever recorded by the MOJ. A claim can result in a court order or warrant for a tenant to leave or bailiffs repossessing the property.

Landlords are also battling rising mortgage rates, squeezing profit margins and risking another exodus of investors from the market.

Rental arrears has meant more than 1,700 landlords were in arrears of 10pc or more on their mortgage, according to UK Finance.