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interest rates drop but too late for many
shelovestobuystuff
Posts: 2,710 Forumite
thought you would be interested in this article from the aol news pages today.Plenty to discuss in here.
Home repossessions 'up by a third'
!
Last Updated: Friday, 08 February 2008, 07:07 GMT
- Search: Home repossessions soar
Figures are expected to show that the number of people whose homes were repossessed jumped by a third during 2007.
The Council of Mortgage Lenders is likely to say that around 30,000 homes were taken over by lenders after people fell behind with their mortgage repayments during the year.
The figure, which would be 32% up on 2006's total, would be the highest level since 1999 and would account for 0.25% of all mortgages.
At the same time the group is expected to say that around 145,000 people are at least three months behind with their mortgage repayments.
Bank of England rate-setters have cut the cost of borrowing by a quarter point to 5.25% and a raft of mortgage lenders have announced they will be passing on the interest rate cut in full.
Halifax, Nationwide, Abbey and Royal Bank of Scotland/NatWest were among those to confirm a 0.25% reduction in their standard variable rates.
The level of repossessions is expected to continue rising during 2008 as a combination of higher interest rates and stretched household budgets take their toll on people's ability to afford their mortgages.
An estimated 1.4 million homeowners are this year due to come off fixed-rate deals that were taken out when rates were much lower, with these people likely to see an average £200 hike in their monthly repayments.
At the same time lenders have tightened their lending criteria as a result of the global credit crunch, making it difficult for some borrowers, particularly those with blemished credit histories, to remortgage, while others will be charged higher rates.
Overall, the CML has forecast that repossessions will soar to 45,000 in 2008 - a level last seen in 1995.
Home repossessions 'up by a third'
!
Last Updated: Friday, 08 February 2008, 07:07 GMT
- Search: Home repossessions soar
Around 30,000 homes were repossessed by lenders in 2007 - report
Figures are expected to show that the number of people whose homes were repossessed jumped by a third during 2007.
The Council of Mortgage Lenders is likely to say that around 30,000 homes were taken over by lenders after people fell behind with their mortgage repayments during the year.
The figure, which would be 32% up on 2006's total, would be the highest level since 1999 and would account for 0.25% of all mortgages.
At the same time the group is expected to say that around 145,000 people are at least three months behind with their mortgage repayments.
Bank of England rate-setters have cut the cost of borrowing by a quarter point to 5.25% and a raft of mortgage lenders have announced they will be passing on the interest rate cut in full.
Halifax, Nationwide, Abbey and Royal Bank of Scotland/NatWest were among those to confirm a 0.25% reduction in their standard variable rates.
The level of repossessions is expected to continue rising during 2008 as a combination of higher interest rates and stretched household budgets take their toll on people's ability to afford their mortgages.
An estimated 1.4 million homeowners are this year due to come off fixed-rate deals that were taken out when rates were much lower, with these people likely to see an average £200 hike in their monthly repayments.
At the same time lenders have tightened their lending criteria as a result of the global credit crunch, making it difficult for some borrowers, particularly those with blemished credit histories, to remortgage, while others will be charged higher rates.
Overall, the CML has forecast that repossessions will soar to 45,000 in 2008 - a level last seen in 1995.
"Reaching out to touch the stars dont forget the flowers at your feet".
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