Fears Regarding Repossessions Increase before the Budget

Tue, 15 Jun 2010

There is just a week to go before the first Budget of the coalition government. Hence, the economy is waiting with baited breath.

Huge cuts are going to be announced on June 22nd, yet how they will exactly pan out we have to wait and see.

We have been forewarned that there will be huge public sector job cuts on the horizon. So, many individuals will be worried as to their security and the impact on their lives once they have lost their main source of income.

For some of the people who lose their jobs, the lost income is not going to be replaced immediately. Hence, this will be the signal of l the start of a downward spiral whereby homeowners could finally find their property being repossessed .

Council of Mortgage Lenders statistics for the last quarter of 2010 highlights that the number of repossessions was 9,800, down from 10,600 in the previous quarter and 13,200 in the first quarter of 2009.

Overall, the number of repossessions is declining. However, certain factors could reverse this trend.

Possible increases in interest rates, rising unemployment and reduced support for mortgage support measures could all mean more borrowers struggling financially to meet future mortgage repayments, potentially resulting in increased repossessions.

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