The number of homes repossessed in the UK by first charge mortgage lenders for the third quarter of this year is up slightly compared to the previous quarter.

According to the Council of Mortgage Lenders (CML), 9,200 properties were repossessed during this period, less than 1% of the total 11.2 million first-charge mortgages in place at the end of September 2011.

The CML are now predicting that it is most likely that the total number of repossessions in 2011 will be lower than their original forecast of 40,000.

Stock of cases in arrears of more than 10% of the oustanding balance

Repossessions are expected to rise over the next year as households continue to feel the squeeze on their incomes through higher inflation, unemployment and government austerity measures. Concerning is the stock of cases with significant arrears: 27,300 loans have arrears of more than 10% of the outstanding balance.

Mike Thomas, head and founder of DebtWizard.com, says “some households are only managing to meet their mortgage payments with the help of historically low interest rates and when they do eventually rise this will result higher payments for many more consumers who will then no longer be able to pay their mortgages, this will then lead to further repossessions”.

Where to get help

Anyone concerned about meeting their mortgage repayments or needing debt management advice should seek professional advice immediately; we have a list of helpful organisations.

Previously had a home repossessed?

If you have had a home repossessed within the past 12 years then you may need to read this article as the debt does not simply go away.

House repossession debt / mortgage shortfall claims

Mike will be adding his blog next few days, so please pop back.