Repossession Soaring

Repossession Soaring


Economists have warned that the number of houses which could face repossession this year could reach over 33,000. The credit crunch could hit harder than ever and according to the Centre for Economics and Business Research there will be a 23 per cent increase in the number of repossessed properties.


As house prices fell for the seventh month in a row even the government stepping with its £50 billion injection into the mortgage industry may not save many home owners.


Banks are adopting cautious lending practices, with the withdrawal of mortgage products and strict lending criteria causing borrowing costs to rise. This year many home owners will face the ordeal of coming off fixed rate mortgage deals in uncertain times and will struggle to cope with higher re-payments.


John Ward CEBR economist stated that, “Until mortgage finance starts to flow again, the outcome will be a reduction in house prices and an increase in repossessions.”


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