Low deposit mortgages increasingly difficult to get
Consumers that are hoping to take out a mortgage to buy a property are still facing a tough time according to officials, even thought house prices have been falling for the past year. Availability of mortgages is still very tight as a result of the ongoing global credit crunch, and many lenders continue to take some of their best deals off the market after very short periods of time. Read more
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Repossessions grew in 2006
January 31, 2007 by admin
Filed under News, News-Mortgages
More people had their homes repossessed as 2006 drew to a close, according to the latest statistics.
The Council of Mortgage Lenders (CML) has released its statistics for the year and they do not make good reading for people struggling to keep up with their mortgage repayments.
According to the CML, 8,860 homes were repossessed in the final six months of 2006, compared to 8,140 in the first six months. The reason for the rise is being put down to increased interest rates and the CML is expecting more repossessions in the coming years.
The organisation is predicting that things will continue to get worse for homeowners, with an expected 19,000 repossessions in 2007 and 20,000 in 2008.
Despite the apparently bleak figures, the CML points out that the 8,860 repossessions at the end of 2006 was fewer than had previously been predicted.
“The arrears picture at the moment is fairly complex,” commented Michael Coogan from the CML. “On the one hand, the wave of problems caused by previous interest rate rises has now worked through, so recently arrears levels have fallen.
“On the other hand, interest rates are rising again, and payment shock may be an issue for some this year as their existing fixed or discounted deals expire.”
Those considering taking out a mortgage are advised to borrow within their means and ensure that they have enough financial clout to deal with any large interest rate rises that may come up in the future.
