May 29, 2008
Increase in UK home repossessions
The British Bankers Association has released figures that indicate more gloom in the housing sector. The association has revealed that ,on an annual basis, home repossessions have increased by 17%. These statistics were obtained from the records of court applications submitted by mortgage providers ,and it appears that the trend will continue.
UK house holders are finding it increasingly difficult to keep up with mortgage payments. Additional figures show that a substantial amount of those with mortgages were over 30 days in payment arrears and 10% of borrowers were over 90 days behind.
Housing analysts believe that increasing inflation and interest rates will force thousands of people into serious financial problems. It has not gone unnoticed that the current situation is similar to the economic conditions that preceded the current US housing market crisis. The effects of the credit crunch means that the UK housing sector is effectively coming to a standstill whilst the global economic crisis claims even more financial victims.