More help to be offered to homeowners facing repossession
There have been some very worrying reports over recent months about the level of repossessions expected in the UK. According to recent reports the number of people facing repossession has risen by 20% in the past year, and the Council of Mortgage Lenders recently announced that the number of people that lose their homes through repossession could rocket to 53,000 over the course of this year – a stark increase compared to its original prediction of around 45,000.
Many of those expected to face repossession are homeowners that took out cheap fixed rate mortgages a couple of years ago, which are now due to come to an end. These people are likely to see their interest rates soar once their cheap fixed rate comes to an end, and this could see a sharp spike in repossessions. With a rise in repossessions expected the government is keen to take action to try and assist those in danger of losing their homes through repossession.
According to a recent report there are a number of steps that the government plans to take in order to try and ease things for those facing repossession and to ensure that they get the advice that they need. The housing minister Caroline Flint stated: “For the minority of owners who may need support and advice now, we want to ensure it is there for them in the right place and at the right time”
She also added that the situation was nowhere near as bad as it was in the 1990s, adding: “It is important to recognise we are dealing with an entirely different situation in the market from what was experienced in the early 1990s. The fundamentals of the housing market remain strong with high employment, low interest rates, and long-term demand for homes from first-time buyers.”
Recent additions:
- Estate agents at risk of problems due to mortgage and housing chaos
- Brokers complain over lack of access to mortgage deals
- Slump in lending levels fuelled by credit crunch
- Struggle continues for first time buyers
- Many lenders ignore base rate cuts
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