Home repossessions rocket in Kingston (From Your Local Guardian)

Home repossessions rocket in Kingston

1:50pm Monday 2nd March 2009

Repossession orders made in Kingston rocketed in the last quarter of 2008, as hapless borrowers fell foul of the worsening financial crisis.

The county court issued 40 per cent more mortgage repossession orders than in the same period in 2007, with 370 homeowners over the whole year failing to keep their heads above water.

A total of 533 tenants in the borough were also forced to hand keys back to their landlords after going through the courts in 2008 - up 25 per cent on the previous year.

The number of claims reaching the courts dropped sharply compared with the same quarter in 2007, however, suggesting new guidance to lenders on giving homeowners some breathing space with their repayments could be having an effect.

Guidelines introduced at the end of 2007 instructed judges to ensure lenders demonstrate they have tried to discuss and agree alternatives to repossession.

The protocol also ensures court action is not taken within the first three months of a borrower missing a payment.