Thursday, Feb 22, 2007
Repossessions on the rise
MoneyExpert: Mortgage rate rises hit home in repossession misery
Homeowners who remember the housing crash of the early 1990s will shiver at the news of a rise in repossessions. Last year saw a 65 per cent rise in the number of homes repossessed after their owners couldn't keep up payments.
That doesn't mean we should all start panicking. The 17,000 repossessions are sad but still represent just 0.38 per cent of all mortgages in the UK. You have a one in 260 chance of getting repossessed.
Posted by little professor @ 06:24 PM (169 views) Add Comment
5 Comments
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1. bidin'matime said...
>The 17,000 repossessions are sad but still represent just 0.38 per cent of all mortgages in the UK. You have a one in 260 chance of getting repossessed.<
Oh, so it’s on a random basis then – the luck of the draw – so all those people who’ve over-borrowed to finance a string of BTLs can relax and rely on the luck of the draw to hope that it’s the middle-aged couple next door with only £10k left on their only mortgage who will get repossessed and not them…
2. paul said...
Yes, there's a great reverse psychology applied every weekend when these economists do the national lottery -
"IT COULD BE YOU!"
3. inbreda said...
Those 17,000 will have begun the repo process before any of the interest rate rises.
I think we'll be reading about 300% rises in the number of repos before long, just on the back of 0.75% rise from historic lows.
4. p. o. o. r said...
If Inbreda is right, and there is an increase of 300%, then this would represent over 1% of all mortages being repossessed or a one in 88. The current increase in repos we have seen are not as a result of recent interest rate rises - what would happen if say interest rates increase to 10 percent or even 15 percent, which is very possible within the next 5 to 10 years.
5. C'mon Correction said...
p.o.o.r - I agree no-one can rule that we won't see a big rise to say 10% base rate. What a horrible thought, we'd be all doomed.