Home foreclosures, called repossessions in the U.K., are on the rise. Although the mortgage market structure is totally different in the U.K., loan losses and bad debt effect financial institutions the same way. People in the U.K. have a record amount of unsecured personal debt.
The number of Britons having their homes repossessed rose to the highest since 1999 as interest-rate increases hobbled subprime borrowers.
Lenders foreclosed on a total of 14,000 properties in the first six months of the year, 30 percent higher than a year earlier, the Council of Mortgage Lenders said in London. That’s still just 0.12 percent of all mortgages. The lobby group for U.K. home-loan providers said it couldn’t give a subprime breakdown.