In the first quarter of 2008, there was a 17% rise in the number of repossession orders compared to the same period in 2007. Repossession orders are the final step taken by a bank or building society before they chose to seize an individual’s property.
With repossession orders rising, it is likely that we will see rises in the number of repossession this year. The Council of Mortgage lenders predicted that repossessions would reach 45,000 this year – a rise of over 50% on 2007.
However, last year there were 95,000 repossession orders and only 27,100 repossessions – less than 30% of repossession orders led to home repossessions. It is suggested that in some cases, repossession orders are used instead to encourage borrowers to get their act together and start talking to their lender(s) about their predicament. Confronting your debt dilemma can be one of the hardest things you’ll ever do. But if you do it now, you can take positive steps to avoid the pain of repossessions. Get Help With Debt now.
For the week beginning 5th May 2008, it was quiet with regards to personal finance news stories. However, the two top stories of relevance to you are:
Interest rates held at 5.0% - The Bank of England’s Monetary Policy Committee (MPC) voted to keep the base interest rate at 5.0% after a quarter-point cut in April. While some had suggested that the Bank should have cut interest rates as weak manufacturing and service sector data was released this week, most analysts expected interest rates to be held. With oil prices rising to US$122 a barrel and with experts at Goldman Sachs predicting growth in oil prices of up to US$200 a barrel, managing inflation remains of the utmost importance to the MPC. It is for this reason that interest rates cannot be cut too quickly.
Credit Action campaign against illegal ads – Credit Action, the national money education charity, launched a campaign in an attempt to highlight illegal credit adverts on social networking websites. The campaign has so far proved to be a success with many of the adverts being removed. To find out more about what adverts are illegal, have a look at Credit Action’s Ad Spotters Guide.
Prepared for Moneybasics by Jason Taylor, Advocacy Officer (Credit Action).