8:40am Wednesday 3rd September 2008
By Alexandra Barham
AS we revealed on Friday, repossessions are rising across St Albans, with hard-pressed families and couples struggling to meet their mortgage repayments as the economic downturn bites.
In the first half of 2008, 142 homes in the district were seized by building societies – a sharp 25 per cent increase from 2007.
Repossessions in St Albans are rising faster than anywhere else in Hertfordshire, Bedfordshire or Essex with the rate accelerating in the second quarter of this year, when 73 owners lost their homes.
This week, the St Albans Citizens’ Advice Bureau (CAB) told the Review it has been flooded with desperate calls from frantic home-owners unable to make their monthly repayments.
Money advisor Lesley Gordon said: “The pressure is great, especially as mortgage costs go up.
“People often start off with a low interest rate for a fixed period then at the end of that period they have to pay more and they find it hard to manage.”
She warned it was impossible to tell how bad the situation could get over the coming months, especially if the national economy slides into a recession as many predict.
She added: “The future is hard to tell. Everybody is in a wait-and-see situation, but we haven’t begun to see the level of repossessions which people experienced in the 1990s.”
According to housing and homeless charity Shelter, there has been a sharp nationwide rise in the number of people seeking help as they can no longer afford to meet mortgage payments.
Chief executive Adam Sampson said: “These figures show that the threat of repossession is affecting every income group throughout society, with particularly huge rises in claims made in St Albans.
“Every day Shelter is seeing more and more people who are terrified of losing their homes – in the past six months alone we have seen a 55 per cent increase in people coming to us for help with mortgage possession actions.”
The charity has urged people who are finding it difficult to meet their mortgage payments not to ignore warning letters from their lender, but to seek advice early.
Mr Sampson added: “Lenders must also play their part and ensure they look at all the options before rushing to the court, and use repossession as the last rather than first option.
“The Government needs to show it really is on people’s sides when they are facing the threat of repossession.”
St Albans MP Anne Main has also warned people not to ‘bury their heads in the sand’ and seek help over money matters as soon as possible.
She said: “People should ask for help now and should not skip mortgage payments.
“There are many places in St Albans that can help people who are struggling – Citizens’ Advice Bureau, Credit Union.
“I am worried. St Albans has lots of young people who may lose their homes. This causes other problems and puts strains on relationships.”
St Albans Liberal Democrat Parliamentary candidate Sandy Walkington added: “These figures are very alarming.
“We know how expensive it is to buy property in St Albans. People have to really extend themselves just to get onto the local housing ladder.
“Many will have taken out limited term fixed rate mortgages and the difficulty comes when they have had to renew their mortgages at much higher variable rates.
“It is not the job of the Government to prevent house prices falling to a more affordable level. But it is not in the interest of the economy as a whole if negative equity and repossession leads to large numbers of people becoming homeless.”
If you are worried about repossession visit Shelter’s website – www.shelter.org.uk – or phone its free national helpline on 0808 800 4444.
People seeking help with money issues can also contact the CAB on Wednesdays between 9am and noon on 01727 833853.
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