Families are in the most severe danger of having their home repossessed over the course of this year, one expert has asserted.
According to Paul Holmes, operations director of first-time buyer solutions firm Firstrung, many families have recently upgraded their property and as a result are saddled with a serious debt management burden.
First-time buyers tend to have taken on a deal that is manageable but families who have doubled the value of their mortgage might find that they have overstretched themselves and are unable to cope with the ongoing economic downturn, says Mr Holmes.
“The real damage here in repossession territory unfortunately is in the family arena,” he said.
“That’s where the affordability is killing people.”
Mr Holmes’ comments come after the Ministry of Justice revealed that repossession claims in England and Wales were up 16 per cent in the first quarter of this year compared with the same period during 2007.