Increase in Home-owners With Low Equity Facing Repossessions

by : su-kai report the number of people facing repossession proceedings in the UK increased significantly in February. It also reports that just two weeks in to March08, the number of enquiries from people worried about repossession has already exceeded the figures for the whole of February08. This comes as no surprise, with some organisations expecting a 40% rise in repossessions this year.

A worrying trend has however emerged from the recent data which shows the number of people facing repossession is heavily weighted towards people with very little equity, with 2 in 3 enquiries received by having less than 10% equity.

The downshift in the housing market does nothing to help this situation as slow sales and high interest rates essentially 'trap' home-owners encroaching on financial difficulties as the low equity they have in their property may not even cover the costs associated with selling - even if they plan to move to a less expensive property.

Another reason for this trend could be the large number of home-owners who have 'interest-only' mortgages without provisions in place for paying off the capital. This means the entire equity in their house will be based on the initial deposit

If anyone is worried about their home being repossessed please contact we provide free advice and practical solutions. Whether you want to stop the repossession altogether, delay the repossession whilst you secure your situation, sell your house fast for cash, or would like to stay in your property as a tenant - we can help you find a solution.