Britons unable to pay

Bloomberg

Foreclosures totaled 11,300, compared with 10,100 in the second quarter, the Council of Mortgage Lenders, which represents British home-loan providers, said. Applications to foreclose increased 9 percent to 38,511 and repossession orders jumped 24 percent to 29,516, the Ministry of Justice said on its Web site.

Prime Minister Gordon Brown last month ordered judges to ensure that home repossessions are only made by banks as a last resort as the country becomes mired in a recession. Unemployment jumped the most in 16 years last month and house prices dropped as banks curtailed lending, undermining consumers' ability to extend borrowings or pay down debt.

"Conditions in the wider economy suggest a worsening picture for mortgage arrears," Michael Coogan, director general of the CML, said in a statement. "The government has taken some helpful steps towards targeted support for some of the most vulnerable households, but with a worsening economy now needs to make it a priority to go further."

The CML's figures cover the entire U.K. and represent 0.1 percent of all mortgaged properties. The CML repeated its forecast that the total number of repossessions in 2009 will reach 45,000.