Mortgage possession claims increase 34%

Latest Ministry of Justice (MoJ) data has shown that mortgage and landlord possession volumes between April and June increased when compared to the same period last year.

The data shows that mortgage possession claims went up by 34% from 3,991 to 5,343, mortgage orders for possession also went up 34% from 2,529 to 3,395, warrants issued are up 9% from 2,679 to 2,918 and repossessions went up 29% from 660 to 854.

Meanwhile, landlord possession claims increased by 9% from 22,526 to 24,495, orders by 15% from 16,029 to 18,436, warrants went up 12% from 9,957 to 11,172 and repossessions increased 16% from 5,950 to 6,927.

Tom Cuppello, Director, Risk AT Broadstone said “These marked increases suggest that we are still a long way off from being out of the woods and many households up and down the country are still struggling with the cost-of-living crisis and spike in mortgage rates over the past two years.

“The data paints a worrying picture of the nation’s personal finances as pressures on household budgets remain. Separate data by KPMG and the Recruitment and Employment Confederation showed that wage growth eased last month potentially clearing a path for further interest rate cuts, which would clearly help those struggling.

“In the meantime, lenders need to ensure they are supporting the long-term financial interests of their customers. The government’s mortgage charter, the advent of consumer duty and additional FCA rules demonstrate that the legislative direction of travel is towards protecting borrowers in uncertain economic times.”