31
Oct
Home repossessions poised to soar
Home repossessions are set to soar next year, it has been
claimed.
According to figures from the Council of Mortgage Lenders (CML),
the number of repossessions is set to jump by 50 per cent during
2008.
This equates to 45,000 homes being repossessed by lenders during
next year, compared with 30,000 during 2007.
The CML said that the phenomenon will be caused in part by the
impact of five interest rate rises in the last 14 months, which
have squeezed affordability for homeowners.
Also prompting the growth in repossessions is lenders tightening
their criteria, thus making it harder for homeowners to re-mortgage
their properties.
It is also expected that the number of people in arrears of at
least three months will increase.
Up to 170,000 homeowners will encounter difficulties maintaining
their mortgage repayments, compared with 145,000 this year, the CML
predicts.
