Are UK House Repossessions Set To Sky-Rocket?
Mortgage repossessions have leaped to their highest level in 5 years with a 65% increase in 2006. Over 17,000 homes were repossessed in the UK last year, and this figure is expected to rise to 19,000 in 2007. However, whilst this is a very unsettling time for those facing repossession, by historical standards UK repossessions are still below the 10-year average. Back in 1991 repossessions totaled 76,000, over four times greater than current levels. The housing market back in the early 1990’s was different in two important respects: 1) In 1991 the economy had just come out of a period of 15% interest rates which made mortgage repayments very unfordable. In 2007, even though we have had a number of interest rate rises in 2006, interest rates are still at comparatively low levels. 2) House prices were falling in 1991, which led to many falling into the negative equity trap – whereby people were unable to sell off their home in order to get out of trouble. Since 1991, there has been an opp
