The week unzipped: Repossessions soaring as householders hit by squeeze on finances

REPOSSESSIONS have reached a 14-year high with 46,000 people evicted over the past year, according to the Council of Mortgage Lenders. On average, 126 people lost their homes each day during 2009.

The headline figure, though a 15 per cent increase on the year before, is significantly below the CML's forecast of 75,000.

And the rate at which borrowers are heading for catastrophe is slowing, with lenders taking 10,200 homes into possession in the fourth quarter of 2009, down 13 per cent on the previous quarter and 2 per cent lower than the last three months of 2008.

Homebuyers aren't out of the woods yet. Some 188,300 mortgages ended the year in arrears equivalent to at least 2.5 per cent of the balance, below the 195,000 CML anticipated and 3 per cent down on the previous quarter, but still 3 per cent higher than at the end of 2008.

Next year the CML expects the position to deteriorate further with 205,000 arrears cases and 53,000 repossessions.

CML director general Michael Coogan said: "2010 will still be a challenging year and some households will inevitably find their finances being squeezed if and when interest rates do eventually rise."

Campbell Robb, chief executive of housing charity Shelter, said: "It is still completely unacceptable. Behind each one of these numbers is a heartbreaking story of a family losing their home."

Princely profit

THE Principality, Wales' largest building society, announced its profits have risen by more than half over the past year. The society, which celebrates its 150th anniversary this year, recorded a profit of more than 14 million and attracted 67,000 new members.

Chief executive Peter Griffiths expressed "cautious optimism" about the future but warned: "Economic recovery has been slow and will continue to be so."

Pin problems

CAMBRIDGE University researchers think they have found a flaw in the Chip-and- Pin payment method that could leave the whole system vulnerable to fraud on a massive scale.

Chip-and-Pin card reader units can be tricked into accepting transactions without the correct number. If exploited, this would allow fraudsters to use stolen plastic despite without knowing the Pin.

The researchers experimented with remote card readers and discovered the so-called "man in the middle" method, using a second, hidden card reader, to send out a signal tricking the terminal into believing the right Pin has been entered.

They claim the device is relatively simple to create and have urged banks to fix the problem immediately. This isn't the first flaw the research team has uncovered. Two years ago they revealed that criminals could create a cloned card from information they get by tapping into communications between a terminal and a card.

Nursery cost blow

CHILDCARE costs are continuing to soar, according to the Daycare Trust.

Scottish parents shell out on average between 78 and 84 on childminders and nursery care each week, research found. For a child under two, this adds up to 4,368 a year for 25 hours of nursery a week.

Fees for under-twos have increased by 6.3 per cent and 8.3 per cent for those aged two and over in the past year and childminder fees rose by 2.6 per cent.

Daycare Trust chief executive Alison Garnham called on politicians to give the issue the priority it deserves.

First-timers return

FIRST-TIME buyer loans hit a two-year high at the end of 2009, driven by demand for properties before the stamp duty holiday ended, said the Council of Mortgage Lenders.

December saw 24,900 first-time buyers borrowing 2.9 billion, a 26 per cent increase from November in value and volume.