There are concerns about the growing consumer debt after a shoot up in the number of repossession proceedings. There’s an increase of 55 per cent in repossession actions and a rise of 66 per cent in re-possession orders, as per the figures released by the Department for Constitutional Affairs it the UK.

A mortgage repossession action is the starting of a court process and an order for repossession is made after a judicial hearing is completed to grant repossession of the property. In Cheshire, the number of orders made increased this year. The mortgage lenders of Britain started 855 repossession actions, as compared to 493 last year. The huge increase in repossession actions indicates that people are struggling with debts. Mortgage brokers commented that the expiry of cheap fixed rate deals result in some borrowers’ monthly bills going up.

Experts commented that even after a court order is granted, homeowners could negotiate a compromise to avoid being evicted. Sue Anderson said that the figures of the department indicate the number of cases that lenders take to the courts and the number of orders granted by the courts.  He added that the statistics are higher than the number of repossessions. George Osbourne, the shadow chancellor criticised the rise in the taxes by saying that earlier this year a lot of actions were entered and 32,366 orders made, but little repossession took place.

Hitesh Patel, CAB chief executive, said that they see a lot of people requiring debt advice. He quipped that in the last six months their team has assisted families in managing 4.3m pounds of debt. He quipped that mortgage arrears should be treated as a priority, but they see people worrying about paying credit cards bills.