Concern at 20% increase in mortgage repossessions

Leading local advice charity, Citizens Advice Exeter, is expressing its concern as mortgage cases listed at Exeter County Court rose by 20%; this is comparing the period ending 31st December 2016 to the same period in 2015. See below why this is of concern to Citizens Advice Exeter.

Across all housing sectors, there was an overall increase of 2.3% in the total number of cases listed. Where a Citizens Advice adviser has assisted those facing repossession, they have avoided repossession in over 95% of cases. Exeter City Council, in partnership with East Devon District Council, has provided financial support for this essential service.

Steve Barriball, Citizens Advice Exeter Chief Executive, said:  “We have at least one adviser present at the Court each Tuesday morning to advise and advocate for clients. In the last nine-months there were 428 cases listed for repossession, a 2.3% increase on the same period last year. The biggest increase is in mortgage repossessions, up by 20%, or 10 households. There was also an increase in housing association repossessions, up by 4.4%. In the private rented sector there was a welcome reduction of 9.5% on the previous year, and no change in local authority repossession actions. There were, on average, 11 cases listed across all housing sectors each week.”  

Steve explained: “For the last few years we have seen the number of cases listed for repossession level out.  With historically low interest rates, the increase of 20% (or 10 cases) in mortgage cases is a real worry. We will be keeping a close eye on whether this trend continues into 2017. It is important that homeowners think about the impact an interest rate rise in the future would have on their ability to keep up with mortgage payments and start to plan now. We have seen evidence showing that one in five homeowners are at risk of arrears if there is an interest rate rise in the future.”

Steve continued: “The upward trend in housing association repossessions is a worry also. We know that often landlords are frustrated at the lack of engagement by tenants when they start to build up arrears. If this is left unchecked it can result in repossession proceedings. We would recommend that any tenant in difficulty speaks to their landlord and gets advice from us as early as possible. “

Steve finished by saying: “I am grateful to our staff and volunteers for providing this essential service to families and households facing repossession. We are also grateful to Exeter City Council and East Devon District Council for funding this service.”