Repossessed Property News
Lenders predict repossession rise (February 06, 2008)
Lenders predict repossession rise
Homeowners are expected to struggle despite interest rate cuts
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Four fifths of mortgage lenders believe that repossessions will rise this year, according to a survey.
Two fifths expect a rise of between 10 and 15% and 8%
predict a rise of more than 15%, the repossession lawyers Moore Blatch
found.
The lenders surveyed account for 40% of the UK mortgage market.
First-time buyers were identified as the group most at
risk, followed by those with 100% mortgages and sub-prime mortgage
customers.
Sub-prime mortgages are those offered to people with inferior credit records or unpredictable incomes.
"We have seen a significant increase in repossessions
over the year, and with house prices falling, the vast majority of
lenders expect this to continue over the foreseeable future," said Paul
Walshe, head of lender services at Moore Blatch.
The firm said that couples splitting up, redundancy or business failure are the primary causes of 69% of repossessions.
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