The Council of Mortgage Lenders has warned it will be harder to stop repossession as they predict a 50% rise in home repossessions in 2008.

The Council of Mortgage Lenders has predicted a 50% rise in home repossessions next year. Homeless charities have told the press that the situation will raise ‘alarm bells’ for homeowners throughout the UK. For those homeowners worried they are at risk of repossession, a specialist home buyer service could provide the answer they need. Home buyer companies can offer a fast cash sale in a matter of days helping homeowners pay off their debts and stop house repossession.

More homeowners have overstretched their finances to pay their mortgage. Mortgages are increasingly offered at 4.5 times a person’s salary – a substantial chunk of their monthly income. And many homeowners have had to borrow much more to secure their place on the property ladder. It’s no wonder this group is more susceptible to house repossession. For those who have over-borrowed, it only takes one unsuspecting bill or unexpected financial outgoing, whether it’s the car breaking down, a burst pipe or best friend’s wedding. The slightest expense can be enough to topple over the financial balancing act homeownership can demand. If you fall into mortgage arrears you are at a very real risk of being unable to stop repossession.

It perhaps isn’t surprising giving the number of factors working against homeowners, from interest rates to the credit crunch, that more people in 2008 will be unable to stop house repossession. The Council of Mortgage Lenders not only predict a 50% rise in repossessions, but are forecasting rising levels of arrears as well as a fall in property prices that will impact on homeowner equity.

The decade-long property boom has helped many people make their fortunes, but there are many victims too – those who have overstretched themselves to try and leap on the property ladder. In America, it’s the sub-prime housing market that has been unable to stop repossessions; the UK has its own equivalent – the adverse credit sector, or people who have been loaned mortgages despite their poor credit history. Having existing debt as well as struggling with the current economic climate is a combination that will leave many UK homeowners at risk.

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