Property repossessions are set to increase before the end of 2008 due to many owners defaulting on their monthly repayments, one property expert has predicted.
Aaron Turner of look4aproperty.com has stated the country’s middle classes will suffer as a result, especially those who rely on self-certification mortgages usually issued to the self-employed.
“These mortgages – known as Alt A – are one up from subprime, the riskiest category,” Mr Turner explained, adding that because nearly three million loans in the UK are used for such mortgages, “professional people” will begin to feel the threat of repossession.
And those worried about such action occurring may wish to seek debt advice from their bank or a financial advisory service.
Mr Turner’s views are shared by Al Elliot, advisor for the Homeowners Advice Centre, who recently stated that repossessions will increase in the coming months if lenders do not put their customers’ needs ahead of the desire for profit and pass on the recent interest rate cuts.
By Tom Musk