Ministers have urged homeowners concerned about their mortgage payments to seek immediate help from their lenders and the Government to avoid repossession.

Hundreds of thousands of families are benefiting from a comprehensive range of support available for people facing the threat of repossession - from free debt advice and greater understanding from lenders, to direct help from the Government for homeowners who have lost their jobs or suffered a sudden drop in income.

New figures from the Ministry of Justice show that lenders made 26,215 claims for mortgage possession between April and June this year, 32% lower than during the same period in 2008 and 14% higher than the first quarter of this year.

19,064 possession claims led to orders being granted by the courts - 31% lower than the second quarter of 2008, and one per cent lower than in the first quarter of this year.

These figures follow a large drop in possessions during the first quarter of 2009 with the introduction of the Mortgage Pre-Action Protocol.

Of the mortgage possession claims that led to orders, 46% were suspended.


Separate figures published from the Council of Mortgage Lenders (CML) show that of the 11,400 repossessions over the past three months, a 10% drop since the last quarter and 26% were voluntary repossessions - that is, homeowners who have fallen into mortgage arrears but rather than seeking help available from their lender or the Government, have just handed in the keys or abandoned their home.

The range of support on offer from Government and lenders could have helped some of these families to stay in their homes.

In a matter of weeks, a new central team will be in place to fast track applications for help through the Mortgage Rescue Scheme, and later this year the Government will launch a new information campaign to encourage more households who could be helped by their lender or be eligible for support to take action and avoid repossession.

Housing Minister Ian Austin said: "Every repossession is a tragedy for the family concerned, but today's figures show hard-pressed homeowners that the government is on their side and providing real help so they can stay in their homes.

"In previous recessions no help was provided whilst people lost their homes. This time, we're doing everything we can to prevent families from going through the trauma of home repossession.

"Families need to know that help is available from the moment they have difficulty paying their mortgage and at each stage of the process. More than 200,000 families each month are getting help with their mortgage payments or getting free Government-funded advice from their local council.

"And we've helped thousands more with other measures, such as stronger protection for homeowners and getting lenders to be more tolerant and helpful, to providing free court advice, or targeted schemes to help families in the toughest situations.

"Under the new rules, lenders can only repossess homes as a last resort, so it's really important that anyone struggling to make mortgage payments seeks immediate help, whether through their lender or a debt adviser. If that doesn't work, then seek free independent advice."

(CD/KMcA)