Houses Of Pain: Property Repossessions Will Rise
AS the dark clouds continue to gather over the housing market, the Guardian warns us that even small increases in interest rates will push up the number of repossessions in the UK to the highest levels since the crash of the early 1990’s.
According to Business Strategies, even a one-percentage point rise to 6.25% in borrowing costs would cause 55,100 homes to be repossessed in 2009, over three times last year’s total of 17,000.
While even if interest rates stay at 5.25%, repossessions are set to double over the next two years. According to Neil Blake of Experian, “Even if interest rates fall back in 2008, write-off rates [for bad debts] and repossessions are still expected to continue increasing until 2009”.
Of course, with that 100% mortgage, what’s new? The bank owns your home anyhow…
Posted: 26th, April 2007 | In: Money Comments (2) | TrackBack | Permalink
