Repossessions rise as debt problems deepen
More people are struggling with their mortgage repayments
a problem that has been made worse by three interest rate rises in the past six months and more people over-borrowing to make their UK investment into the property market.-more->
These are the conclusions reached by property purchasing company A Quick Sale, utilising data from the Council of Mortgage Lenders (CML) showing that there were 8,140 repossessions in the first half of 2006 and 8,860 in the second.
A Quick Save managing director Richard Watters said: “Unfortunately, many people are letting their financial situations get to crisis point before seeking help, which can lead to an even worse predicament.
“The interest rate rises have done little to help people who were already struggling with their finances and particularly for those who are not on fixed rate mortgages to make their UK investment in property.
“Many of these people have seen dramatic increases in their monthly repayments, which has tipped them over the edge.”
This assertion is endorsed by estimates from the Royal Institution of Chartered Surveyors that reckon more than 50 families will lose their homes every day in 2007 because they can no longer afford to make their debt repayments.