Homeowners who are 'on the brink' and just managing to hold onto their home may be unable to continue when costs increase.

A leading charity has warned that home repossessions are set to soar as interest rates start to rise again.

Shelter Scotland Director Graeme Brown said mortgage actions taken to court have risen 20% in the last year, even though the Scottish government said a proposed new law should help to protect people and help them avoid losing their homes.

This week, at a conference on tackling mortgage repossessions, Shelter Scotland will commend those proposals and urge lenders to give the planned law their full and unequivocal backing.

Sheriff Court figures already show that increasing numbers of people are facing losing their home in Scotland.

The statistics show a 20% rise in mortgage actions taken to court in 2008-09 and a 50% rise in decrees granted.


Speaking ahead of the conference, Mr Brown said: "Radical action is needed at a time when more families than ever are losing their homes. Without that, repossessions are set to soar.

"But improved safety nets at a time of recession, is only one part of the picture. As first time buyer numbers plummet, protections for homeowners must be matched by protections for tenants.

"Unless we get a better balance in the housing market, we are already sowing the seeds of the next boom and bust cycle."

The conference will provide the first major opportunity to discuss the recommendations of the Scottish government's Repossessions Working Group, published earlier this year, and to hear about the Home Owner and Debtor Protection Bill on mortgage repossessions which has now started to go through the Scottish parliament.

Housing and Communities Minister, Alex Neil said: "Proposals for a new law - the Home Owner and Debtor Protection (Scotland) Bill - to protect people affected by debt and at risk of repossession were recently published.

"This legislation will provide practical help by ensuring for the first time that all action for repossession is scrutinised by the courts to ensure every reasonable alternative to repossession has been considered by lenders, and that they have acted appropriately.

"It will also make it easier for borrowers to make representations to court. I hope the bill will continue to attract broad support from across the political spectrum."

(BMcC/KMcA)