Industry experts and consumer groups alike have been greatly concerned over the increasing level of arrears and defaults on homeowner loans over the course of the past twelve months or so and although the situation within the housing and homeowner loan markets seem to be picking up slowly, with regard to new sales and loans, many borrowers with an existing loan secured on their home are still finding it difficult to maintain their monthly repayments and stop themselves falling into the problem of growing loan arrears and the eventual possibility of having their home repossessed.

The Council of Mortgage Lenders (CML) released the latest figures on repossessions earlier this month, which showed that the number of people losing their homes through loan arrears and defaults had actually fallen by ten per cent in the second three months of the year, compared with the first quarter.

Despite these statistics, the housing charity Shelter has warned that this could simply be a dip in the overall figures and it is quite likely that we will see another, possibly larger, wave of loan arrears and repossessions when interest rates on home owner loans and mortgages eventually increase again, possibly as soon as the beginning of next year.

Shelter has said that due to an increase in the unemployment figures, a growing number of borrowers are already struggling to keep up with their homeowner loan repayments and a rise in interest rates could push many of these individuals beyond their financial breaking point. Kate Boycott of Shelter said that banks and building societies needed to do more to help those borrowers struggling with their loans, “Despite many lenders using more tolerant measures to help their customers, further action is needed if we are to prevent a second and more devastating wave of repossessions.

Banks have been bailed out with billions of pounds of taxpayers’ money. Now it’s time to ensure they do everything they can to keep customers in their homes.”