Recent statistics from the Department for Constitutional Affairs found that possession orders have increased by 66% over the last year. The figures also showed that possession orders for the first three quarters of 2005 were 12% higher than for the whole of 2004.
But insurers believe that new style mortgage insurance products could save the housing market from the same type of problems of the 1990's when lenders lost millions and insurers tried to recoup their losses from the repossessed homes.
Our view
Higher interest rates and a tougher job climate combined with people borrowing too much inevitably means greater repossessions.
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