Mortgage Possession Procedure Rise Deeply Worrying - Cable

3.19.12pm BST (GMT +0100) Wed 26th Oct 2005

Responding to the latest statistics from the Department of Constitutional Affairs which show a huge rise in the number of mortgage possession procedures issued in the county courts, Vince Cable, Liberal Democrat Shadow Chancellor said: "These figures are deeply worrying. While they are at low levels compared to the early 1990's there are clearly big problems ahead.

"At long last the Chancellor has accepted there is a bubble in the housing market. Now he needs to recognise that for many homeowners it is sadly bursting and that he needs to take action.

"Banks and building societies need to ensure that when individuals take out mortgages they are fully aware of the risks that are involved and of the relevant insurance products.

"These figures demonstrate the complete absence of an adequate safety net in the mortgage market. The government needs to urgently look at the payment protection insurance markets as products are often over-priced and contain too many exemptions."

ENDS

Notes to editors

Number of actions entered in the 3 months to September 2005 29,991

Number of actions entered in the 3 months to September 2004 19,359

(a rise of 55%)

Number of orders made in the 3 months to September 2005 19,687

Number of orders made in the 3 months to September 2004 11,682

(a rise of 66%)