1.4 million face problems say National Homebuyers
Many people may face a battle to avoid repossession in the year ahead, suggested the Financial Services Authority (FSA).
[UKPRwire, Wed Mar 19 2008] The organisation has pointed out that 1.4 million are due to come to the end of their discounted or fixed-rate mortgages in 2008.
However, the global credit crunch has removed many deals from the market and lenders have become much stricter about who they lend to, meaning it will be more difficult for borrowers to find another deal that is suitable.
This could potentially lead to over a million people struggling to avoid repossession this year.
"People may have found that that's such a good deal that when they come to renew it, they're either not able to raise the same amount of credit, or it's going to cost them more to do so," Chris Pond from the FSA told BBC Two's 'Working Lunch'.
Mr Pond said that the FSA is focussing on ensuring lenders treat their customers fairly.
Fast property sale expert Julian King adds, "Our analysts are predicting around 45,000 repossessions this year. An increase of 50 per cent on 2007.
"Most repossession cases could be avoided if the homeowner acts quickly enough. We have assisted hundreds of homeowners out of their repossession worry and we encourage anyone with financial difficulties to act quick to avoid the worst".
Mr King is a director of National Homebuyers, the UK's leading quick house sale company which guarantees to make an offer on any property in the UK, regardless of its condition or location. The company is also the UK's leaders in Sell and Rent Back equity release solutions for homeowners who need to release cash in their home without moving.