Repossessions Drop as Lenders move to Interest Only Payments

The falling rate of repossessions is due to lenders allowing more customers to move to interest only payments on their loans.

A survey which provides a network of accountants and lawyers offering financial advice, fears Britain could become a "nation of homeowners who do not own their properties at the end of their term".

Earlier this month the Council for Mortgage Lenders reported that this year 48,000 repossession orders are predicted to be made was lower than last year's projected forecast of 75,000 repossessions for 2009.

It is hearing from people who have a mortgage and a secured loan which is more than their property and, as a result, they are essentially a prisoners in their own homes as they could not sell it.