27 August 2009
Property repossessions 'may be set to increase'
The number of consumers facing repossession of their homes is likely to rise, it has been claimed.
According to Ian Boden-Smyth, money advice coordinator for the UK Insolvency Helpline, recent falls in property repossessions have been aided by low interest rates, but as such rates begin to go up, the trend will be reversed.
Figures produced by the Council of Mortgage Lenders show that a total of 11,400 homes were repossessed during the second quarter of 2009, compared with 12,700 during the first three months of the year.
However, Mr Boden-Smyth warned that problems will occur if the Monetary Policy Committee raises the rate in the near future.
He added: "The key to repossessions staying at a low rate will be purely interest rates staying at a low rate. If they go up - three, four, five, six per cent - that is where the problems are going to arise."