Repossessions increase by 40%
The Property Step | Category: featured articles, housing market
Yet more doom and gloom for those worrying about how they will keep up those ever-increasing mortgage payments. Over at The Guardian HQ they reported a story earlier this month worth reviewing:
Extract begins from Hilary Osbourne at guardian.co.uk
The number of homes repossessed by mortgage lenders rose by 40% in the first quarter of the year, and there are signs borrowers are increasingly struggling to repay their debts, the City watchdog said today.
The Financial Services Authority (FSA) said the number of repossessions had grown significantly in the last quarter of 2007 and the first quarter of this year, rising by 40% year-on-year from 6,471 to 9,152.
Research based on figures from more than 300 lenders regulated by the FSA showed the number of people who had fallen behind on mortgage repayments was also up. Some 54,000 borrowers fell into arrears during the first quarter of 2008, bringing the total number of loans in arrears to 302,000.
The number of new cases has stayed constant over recent quarters, but the total number of loans in arrears is 15% higher than the figure for the first quarter of 2007, indicating that borrowers who get into difficulties are finding it harder to catch up with repayments.
Rising costs for mortgages, energy and food, and difficulties in the economy as a whole have led some commentators to predict an increase in the number of borrowers struggling to repay mortgage debt.
The Council of Mortgage Lenders has predicted that 45,000 properties could be repossessed by the end of 2008 – a 50% increase on last year’s figure – and is expected to report a rising number of repossessions when it publishes figures for the first six months of the year this Friday.
Extract ends from Hilary Osbourne at guardian.co.uk
The increase in repossessions marks a telling point in the state of the UK housing market. The Property Step speaks to its fair share of families experiencing the threat of repossession. Whilst reports state that mortgage lenders will use this method as last resort, the figures reported by The Guardian speak for itself.
Once you’ve contacted The Property Step and explained your circumstances, we will spring into action to halt proceedings. The easiest way to prevent repossession is to pay the outstanding arrears and return to financial normality.
Unfortunately, for some this is easier said than done and the only solution is to either be repossessed and walk away from home ownership (not the preferred route) or sell on your property to clear the outstanding debt.
The Property Step can agree a property sale in 5 days or less and can exchange/complete in as little as 3 weeks. By calling us on 0800 011 29 39 you can be well on your way to financial freedom. In most cases, you don’t have to move home, as you’re able to rent back the property from us.
