Crunch hits home as figures soar

Date published: 12/05/2008

The number of Rochdalians who face losing their homes has soared by almost a third as the credit crunch continues to bite.

Mortgage lenders launched 400 repossession actions in county courts between January and March, this year — up 32 per cent in the same period of 2007.

An action entered is the first step in the process for seizing a property, where a lender issues a summons in a county court. A claim action comes before mortgage possession orders, when a court grants an order for possession of a home. The number of repossession orders actually made in the Oldham County Court, which covers Rochdale, was 306 — a 49 per cent increase compared with the same period in 2007.

The figures do not reveal the actual number of repossessions because even after an order has been made, a person can still settle their debts and save their home and reach an agreement with the borrower.

The statistics, published by the Ministry of Justice, prompted a warning that back-to-back interest rate rises were beginning to bite. And the figures come as Housing Minister Caroline Flint announced measures to help those struggling and face losing their homes.

She said: “Most lenders are now passing on interest rate cuts and we want to see the rest follow as soon as possible. But for the minority of owners who may need support and advice now, we want to ensure it is there for them in the right place and at the right time.”

There will also be more specialist debt advice training for Citizens’ Advice Bureau staff and local authorities, work with lenders to ensure they offer more help to those facing difficulties and strengthened help from the National Housing Advice Service.