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Repossessions have risen by 50% over the last year in the UK, highlighting how critical it is to seek out mortgage help before it's too late.

The Council of Mortgage Lenders found that there were 12,800 repossessions by mortgage lenders in the first quarter of this year, compared with 8,500 in the first quarter of 2008.

Although repossessions are still rising, the CML now thinks its 75,000 forecast looks pessimistic for the year as a whole, and expects to revise the figure downwards in its next housing market forecast update.

Michael Coogan , CML Director General says: "Lenders genuinely want to help borrowers where borrowers are committed to working with them. It is quite clear that the number of arrears cases is rising far more markedly than the number of repossessions."

Louise Cuming, head of mortgages at moneysupermarket.com, says: "Many people in dire financial straits may still hope that if they ignore the problem it will go away, but it won't. Taking swift action and seeking help early on is always the best policy, and lenders are very willing to help people who address a monetary problem before it becomes a crisis."

Coogan adds: "The key message continues to be: talk to your lender as soon as you identify difficulties emerging, and take advice from an independent adviser if you have other debt issues as well as your mortgage. Lenders do not want to repossess if a realistic alternative solution can be found."

SOURCE: CML, moneysupermarket.com, 15/05/09

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