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Finance
Mortgages, pensions, loans, shares, savings |
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House Repossessions Rise with Interest Rates
House repossessions have risen a staggering 30% surged by 30 per cent in just 6 months as a result of rising interest rates. Last week the Council of Mortgage Lenders said over 14,000 homes have been repossessed throughout the UK in the first 6 months of this year.
Homeowners struggling with the recent spate of interest rate rises are finding it hard to make ends meet. Sadly for some, home repossession is the end result. On average, 77 homes are being repossessed every day in the UK. Latest figures are 18% up on the previous 6 months (July December 2006) and 30% higher than 2006 figures for the same 6 month period.
With home repossessions currently at their highest since 1999, the Council of Mortgage Lenders attribute some blame to a general increase in mortgage-lending to borrowers with a poor credit history in the sub-prime sector. They added that 125,100 homeowners had mortgage arrears of three months or more, a figure 4% higher than the previous 6 month period to the end of 2006.
Meanwhile, property experts are predicting house prices could rise by as much as 40% in the next 5 years potentially bad news for first-time buyers keen to get themselves onto the property ladder. The National Housing Federation claim a shortage of land on which to build new houses will lead to continued escalating of prices.
A spokesperson for the group said: At root the problem is a lack of supply. We do not have enough homes in the market to be able to accommodate everyone who needs a home. And therefore the price continues to go up.
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