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Interest rates drive down number of repossessions

RECORD low interest rates have helped push the number of repossessions in the UK to the lowest level since 2007, but they are likely to soar this year as unemployment worsens, lenders have warned.

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Vicky Shaw

Some 36,200 properties were repossessed last year, 4000 fewer than forecast, and repossessions in the final quarter were down 9% on the previous quarter.

However, rising living costs are likely to drive the year-long figure back up to 45,000 by the end of 2012, the Council of Mortgage Lenders (CML) said.