Montgomeryshire Repossessions begin to climb - Öpik (Montgomeryshire Liberal Democrats)

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Montgomeryshire Liberal Democrats <montlibdems@gmail.com>

Montgomeryshire Repossessions begin to climb - Öpik

April 9, 2008 3:50 PM

During a Liberal Democrat opposition debate in the Commons last week on Repossessions and the Housing Market, Liberal Democrat MP for Montgomeryshire and Housing Spokesperson, Lembit Öpik, spoke out about the very serious situation facing many homeowners across the country.

The latest official Government figures show that in Wales alone there has been a 14% rise in mortgage repossession orders served in the last year and this is set to rise with the current market conditions.

Homes across Dyfed Powys were hit with 921 repossession orders last year, with 78 orders being issued by Welshpool and Newton County Court. The Bank of England has also warned that banks and building societies are planning to cut back their lending further in coming months.

The crisis in the credit market is reducing the availability of cheap loans and mortgages, hitting people on the housing ladder and those not yet on it. As interest rates are higher now than they were two years ago, this could add £200 to the average monthly mortgage bill, placing yet more pressure on severely stretched family budgets. During the debate, Lembit Öpik said:

"About £7.5 trillion-worth of real estate is in the British public's possession, but the fact that debt is coming up to £1.4 trillion is a concern, due to the sheer size of the debt and the difficulty in managing it.

"The British people now pay £1 million of debt interest every nine minutes. That is one reason why interest rates are so important, and have such a powerful effect on the general fortunes of our country."

Even well-meaning Government schemes are not yet realising their potential: so far, only 700 individuals have been assisted by the £100 million first-time buyers' scheme.

"An increasing number of families in Montgomeryshire are now facing the real possibility of losing their home. As their fixed rates come to an end, many households will be faced with rising payments. I would like to see a concerted effort by Government to alter the situation for home owners caught up in this financial squeeze, and to consider options other than repossession."

Ends/diwedd

Notes to editor:

http://www.justice.gov.uk/publications/mortgatelandlordpossession.htm