31 Oct

Home repossessions poised to soar

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.

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