A range of factors will contribute to seeing repossession rates in the UK rise considerably over the course of next year, according to the Council of Mortgage Lenders (CML).
The council expects to see debt management become increasingly difficult for many homeowners around the country and forecasts that there will be 50 per cent more home repossessions in 2007 than this year.
Moreover, there are likely to be around 25,000 more homeowners falling thee months or more behind on their mortgage loan repayments next year, the council suggests.
Director general of the CML Michael Coogan said: “The housing and mortgage markets are facing their most challenging period since Labour came to power a decade ago.
“Most borrowers will cope, but not everyone will escape unharmed from the effects of a slower market,” he added.
The Consumer Credit Counselling Service claimed earlier this year that homeowners around the UK would be “on the rack” financially throughout 2007.