According to a survey by the Financial Services Authority (FSA), almost a fifth of mortgage payers are worried about their ability to meet repayments in the next twelve months, and a quarter of these have no plans in place to deal with the situation.
The Council of Mortgage Lenders have reported a steep rise in the number of homes being repossessed, with an estimated 14,000 properties being seized in the first half of the year, up 30% from the same period last year. It’s not all bad news apparently though, as the number of mortgages in arrears fell slightly over the same period, 3% down to around 125,000.
The Council of Mortgage Lenders has reported that the number of people missing mortgage payments has rocketed to 77,000 a month in the first six months of 2007, compared to an average of 36,000 a month in the whole of 2006.
The rise is blamed on recent hikes in interest rates, and with the built-in time lag between rate rises and their effects being seen, it is feared that the picture could get even bleaker for households struggling to meet their commitments.