Home repossessions rise to 27,000

The number of homes in the UK repossessed by lenders rose last year by 21%, to 27,100.

This is the highest figure since 1999, more than the 22,400 in 2006, and far more than the 8,500 of 2003.

The number of mortgages in arrears rose by 8.6% compared to 2006. Repossessions are expected to rise again this year.

Added pressures on homeowners are expected this year, owing to higher energy bills, food costs, banks cutting back on credit card borrowing, and more than a million people coming off fixed-rate mortgages.