Repossessions set to rise say National Homebuyers

The majority of mortgage lenders believe that the number of repossessions in the UK will increase over the course of this year, according to a new study.

[ClickPress, Mon Feb 18 2008] Research carried out by law firm Moore Blatch found that four in five lenders think that the rising cost of ownership will take its toll in 2008.

Some 40 per cent of mortgage providers anticipate a ten to 15 per cent rise in repossessions and eight per cent think the figure will be higher than this.

According to the report, first-time buyers are at the greatest risk of repossession, while 100 per cent mortgage and sub-prime mortgage holders were also said to be in danger of losing property this year.

A recent study from KPMG warned that the number of personal insolvencies is likely to increase over coming months.

"Almost every economic indicator suggests that things are going to get worse before they get better," said Mark Sands from KPMG.

Fast property sale expert Julian King says, "Our analysts are confident that despite the options available to help those in financial difficulty, we will see a 50 per cent rise in repossessions this year.

"This could be easily avoided with a mortgage rescue scheme such as Sell and Rent Back. The issue we face is getting the homeowner to act quickly enough to avoid the banks taking possession of each property".

Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that guarantees to make an offer on any property in the UK, regardless of its condition or location. The company also offers the Sell and Rent back solution for homeowners to release equity, but remain living in their home.

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