Friday May 9, 07:10 AM
Huge Rise In Home Repossessions Feared
By Sky News
A big increase in the number of people whose homes are repossessed is expected to be revealed today. The Ministry of Justice is publishing figures showing how many court orders were granted in England and Wales in the first quarter of the year. The
figures will give an indication of how homeowners are coping with higher mortgage repayments as a result of the credit crunch.The number of homes repossessed soared by 21% in 2007 to an eight-year high, according to the Council of Mortgage Lenders. It said a total of 27,100 homes were taken back by lenders after their owners fell behind with their mortgage payments. That ls more than triple the number three years ago. It fears things will get even worse this year with an estimated 45,000 repossessions. Worryingly, say experts, this forecast was made before the full impact of the credit crunch became clear. Problems in the wholesale money markets have forced lenders to increase their mortgage rates, despite cuts in the official cost of borrowing. It has also made them increasingly risk averse, making it harder for people to get cheaper fixed-term deals.
Click here for more breaking stories from Sky News
|
Send Article by Email
