Rise in number of homes being repossessed

The number of homes repossessed during the last quarter rose to 9,100 - 15 per cent higher than the previous three months. The Council of Mortgage Lenders (CML) predicted that around 40,000 people would lose their homes this year, up from 36,000 in 2010.

Michael Coogan, director general at CML, said: "The financial position of many households is likely to be stretched for some while."

While more homes are being repossessed, the number of mortgages with arrears equivalent to 2.5 per cent of the outstanding balance fell from 1.5 per cent to 1.47 per cent of all loans.

Read a full report at BBC News. ·