Introduction
The Council of Mortgage Lenders (CML) has recently released a report stating that there will be no let up in repossessions in 2009. This is bad news for homeowners who are already struggling to keep up with their mortgage payments. In this article, we’ll take a closer look at the reasons behind the high number of repossessions and what homeowners can do to protect themselves.
The Current State of the Housing Market
The housing market has been struggling for some time now, with falling house prices and a lack of available credit making it difficult for many people to get on the property ladder. This has led to an increase in the number of people renting, which has put pressure on the rental market and driven up rents in some areas.
Why Are Repossessions on the Rise?
There are a number of reasons why repossessions are on the rise. The first is the economic downturn, which has led to job losses and reduced incomes for many people. This has made it difficult for them to keep up with their mortgage payments, leading to an increase in arrears and eventual repossession.Another reason for the increase in repossessions is the tightening of lending criteria by mortgage lenders. This has made it more difficult for people to get a mortgage, particularly if they have a poor credit history or a low income. As a result, many people are being forced to take out loans with high interest rates or turn to subprime lenders, which can be very risky.
What Can Homeowners Do to Protect Themselves?
If you’re a homeowner who is struggling to keep up with your mortgage payments, there are a number of things you can do to protect yourself. The first is to speak to your lender as soon as possible. They may be able to offer you a payment holiday or a temporary reduction in your monthly payments to help you get back on track.You should also consider seeking advice from a debt counsellor or financial advisor. They can help you to work out a budget and find ways to reduce your outgoings, which may make it easier for you to keep up with your mortgage payments.
Conclusion
The Council of Mortgage Lenders’ prediction that there will be no let up in repossessions in 2009 is bad news for homeowners who are already struggling to keep up with their mortgage payments. However, by speaking to your lender and seeking advice from a debt counsellor or financial advisor, you can take steps to protect yourself and keep your home.