75,000 repossessed  homes this year, 120,000 repossessions by 2011 lenders not playing ball and still not proving mortgages to first time buyers, Treasury Select Committee demands answers from bankers.

City Desk

Home loans are still not available to families attempting to buy homes, and home repossessions are on an upward spiral, reveals the Treasury select Committee which will be requesting heads of financial institutions in July to give an account as to the current crisis.

Despite spurious reports of "green shoots" in the economy it is still widely accepted that the UK economy remains ion "crisis mode" with around 75,000 families likely to have their homes repossessed this year.

The Treasury Select Committee will be seeking according to a report in The Times "written submissions" on the availability of home loans to first time buyers.

Repossessions could hit 120,000 in 2011 according to Ian Shepherdson of High Frequency Economics all caused by the increase in unemployment.  The government yesterday announced that unemployment figures grew to 2.26 million a rise of 232,000 in three months to April.

Others in the property market are blaming lenders for charging "prohibitory high rates" for not allowing first time to return to buy homes.  Figures are showing that the number of mortgages has fallen significantly since the "credit crunch" in mid 2007.  In 2007 there were 11,951 mortgage products available now only 1,265 are being sold by lenders, (source moneyfacts.co.uk)

HBOS the UK’s largest lender is marketing mortgages for first time buyers with a 10 per cent deposit at 6.74 per cent for a five year fixed rate deal compared with 4.19 per cent for existing homeowners with a 40 per cent deposit.