10 Oct

70% of repossessions are sub-prime mortgages

70% of repossessions are sub-prime mortgages

More than two-thirds of houses recently repossessed were bought with sub-prime mortgages, according to an explosive BBC documentary.

Research conducted for the BBC' flagship documentary programme Panorama found that more than 70 per cent of homeowners who were recently summoned for repossession hearings had been given the loans despite their poor credit rating.

The over-representation of sub-prime mortgage holders was highlighted by the fact that the sector makes up just seven per cent of the UK market.

Also uncovered by the documentary was that some of those with sub-prime mortgages are often paying as much as 11 per cent interest on their loans.

Questioned by the Panorama, the Bradbury family, who are both in their fifties and receive benefits but currently hold a £55,000 mortgage at 11 per cent interest, confessed that a further interest rate rise would make repossession likely.

Mr Bradbury said: "I'm at the mercy of the interest rate. If it goes up again, I'll struggle, I'll try and meet it. But after that if it goes up again I can't. We'll just lose the house."

In the last three months 7,000 homes have been repossessed, the programme makers claim.


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