HOUSE repossessions soared by 41 per cent in the first three months of this year as more borrowers struggled to make their mortgage repayments.
Figures published yesterday by the Financial Services Authority (FSA) showed that there were 9,152 new repossessions in the first quarter, compared with 6,471 in the same period last year.
And the number of mortgages in arrears reached 302,000 a
fter 54,000 borrowers fell behind on their payments in the quarter, 15 per cent more than in the first three months of 2007.
The FSA yesterday warned that some families were being evicted too quickly, telling lenders to treat people at risk of repossession more fairly.
Specialist lenders in particular were failing to sufficiently ensure borrowers would be able to repay loans and were too ready to take court action, the FSA said. Lesley Titcomb, the FSA director responsible for the mortgage sector, said: "As our data shows, in these market conditions more people are struggling to meet their mortgage payments and it is vital that firms treat them fairly."
Graeme Brown, director of Shelter Scotland, said the review supported his group's evidence.
But the Council of Mortgage Lenders, which recently introduced voluntary measures to address arrears, insisted the industry was making strenuous efforts to ensure that repossession was only a last resort.
The full article contains 227 words and appears in The Scotsman newspaper.
