Mortgage Repossessions Rocket To Highest Level Since 2001

[Realistbear]

http://www.iii.co.uk/news/?type=afxnews&am...;action=article

Gerrard at Grant Thornton expressed concern that the rise in bankruptcies has come at a time of a relatively benign economic backdrop.

"Despite the fact that the growth in unsecured consumer credit is continuing to fall, there are still plenty of people who are either overspending or struggling to juggle their debts -- for this group an increase in mortgage payments on the back of a rate rise or more expensive gas and electricity can prove 'fatal'," he added.

There was further gloom too, with figures released by the Council of Mortgage Lenders showing that the number of

properties taken into possession by UK mortgage lenders rose to their highest level in five years.

A total of 8,140 properties were taken into possession in the first half of 2006, equivalent to 0.07 pct of all mortgages and a jump from 5,690 in the second half of 2005.

This is the highest number of possessions since the first half of 2001

.

The CML said it believes that the rise in payment problems followed the rise in interest rates between the autumn of 2003 and summer of 2004, and that these have now largely worked through.

Yesterday's decision by the Bank of England to raise interest rates will "add to payment difficulties for hard-pressed mortgage borrowers at the margins," it said.

The unwinding of the Miracle Economy continues apace......................................

Edited August 4, 2006 by Realistbear