You pledged your property to the lender for a loan and got the much-needed amount from him. Now the lender is after your property. He is threatening to take steps for repossession of the property that you placed with him as collateral. Cases of the repossessions are rising alarmingly in UK. It is high time that borrowers think over this growing problem of theirs. Repossession cases in UK are on the rise because consumers borrow so much that at one stage they are in no position to repay loan installments.

As a result of mounting consumer debts the incidents of repossessions have increased alarmingly in the UK. According to one estimate more than 50 percent increase has been recorded in home repossession orders in recent times.

Lenders filed nearly 30000 applications in the courts for repossession in just three months ended September 2005. This is a whopping 55 percent increase over the same period last year. Out of the applications filed, the courts granted a total of 19687 orders for repossession. In rest of the cases the court allowed the borrowers to stay in their homes provided they clear the repayments.

Repossession of a property that is put as a collateral with the lender takes place when the borrower fails to make payment under a loan agreement. The creditor who is entitled to repossession usually does it through an agent. After the property has been finally taken in possession the lender goes for selling it in a commercial manner to regain the money he had loaned to the borrower.

It was way back in early nineties that cases of repossession and bankruptcies mounted up in huge numbers due to rocketing interest rates.

Today, the interest rates are comfortable enough for the consumers. Still, repossession cases are on the rise. This is because of