Friday, September 17, 2010
More Vested Interest Fun
The number of house repossessions continues to fall, according to latest figures from the Council of Mortgage Lenders (CML) - but this could just be a smokescreen, warns national debt advisor Payplan. CML's forecast for 2010 repossessions has been revised from 53,000 to 39,000 while mortgage arrears in the first half of the year dropped by 5%. But these positive figures could be painting a false picture and the autumn could see a return to bad debt mortgage, says John Fairhurst, managing director at free debt advice provider Payplan. "Low interest rates have driven down mortgage repayments but this bubble will burst and the prospect of higher interest rates is inevitable. Combine this with a rise in both the cost of living and unemployment and it could be a rocky time ahead."