August 8, 2008
Loan arrears may force property sales
The onset of the current credit crunch has meant that a significant number of the UK’s financial institutions are implementing measures to restrict ,what they consider to be, loss making practices.
For instance, mortgage lenders and those firms that specialize in secured loans see no financial benefit in trying to imprison clients who default on their repayments. The economic situation means that every penny counts and these companies would rather see their customers sell their homes in order to ensure that any debts are repaid. Unfortunately, this could result in thousands of people being homeless.
It is estimated that the UK had accumulated £1,442 billion worth of personal debt by the end of May, whilst the secured loans total hit £1,210 billion for the same period.