Mortgage arrears hit more Exeter homeowners

MORE people in Exeter are at risk of losing their homes because of mortgage and rent arrears, new figures show.

The number of mortgage repossession orders made by Exeter County Court in July to September was up 25 per cent on the same period last year to 99.

Other cities in the South West have been worse hit, with the number of orders soaring by 75 per cent in Plymouth and 132 per cent in Truro.

So far this year, a total of 286 households in the Exeter area have faced the threat of repossession — a 23 per cent rise on last year.

Not all orders result in a home being repossessed, as borrowers still have time to reach an agreement with their lender over repayments.

Statistics published yesterday by the Ministry of Justice also showed a sharper rise in the number of landlord possession orders made in Exeter against tenants with rent arrears — up 65 per cent to 168 in the third quarter of this year.

Catherine Brabner, Shelter regional campaigns officer for the South West, said: "These are not just numbers, but tragic stories of people in Exeter losing their homes and facing the real prospect of homelessness this Christmas.

"We are nowhere near out of the woods, and the Government must continue putting pressure on lenders and the courts to do everything possible to keep people in their homes."

Derek Phillips, chairman of Exeter Chamber of Commerce, said: "This is obviously an indication of the wider economic climate and it's sad to see that happening, although the numbers are not that great.

"We are waiting with interest to see what measures the Chancellor announces in his pre-Budget report."

Roger Wilkinson, of Wilkinson Grant estate agents in Exeter, said it was important to see the figures in perspective.

"The number of repossessions at a national level equates to two per cent of all mortgages, so 98 per cent of people are paying their mortgage on time and in full," he said.

"Mortgage interest rates are beginning to fall and while undoubtedly more people are likely to get into arrears, lenders will be forced to take a more sympathetic approach. Secondly, as rates come down, the affordability of payments will increase."

Steve Barriball, director of Exeter Citizens Advice Bureau, said: "The number of people coming to the bureau, the number of cases we are advising on in the courts and more general requests for information about debt are all going one way — up.

"The number of people entering our debt system, where we start negotiating with creditors on their behalf, doubled from 15 in September to 30 in October.

The value of unsecured debt arrears people are coming to us with was around £500,000 in October alone."

Across England and Wales, 29,516 mortgage possession orders were made in the third quarter of this year, up 24 per cent on the same period in 2007. According to the Council of Mortgage Lenders, these resulted in 11,300 homes being repossessed.

Meanwhile, the National Association of Estate Agents suggested more than a fifth of homes up for sale are on the market because their owners are being forced to sell for financial reasons.