House repossessions to rise in 2012
Ooh, what’s going to happen to your mortgage when interest rates finally rise? Will you be able to afford it? Will you be in financial dire straits? The Council of Mortgage Lenders has warned that house repossessions could rise next year as a result of higher interest rates.
In its most recent forecast for 2012, the CML predicts that repossessions will rise from 40,000 this year to 45,000 in 2012. It also predicts that ‘mortgage rationing’ will still be in place until at least the end of next year.
But the forecast warns that lenders will remain cautious about the size of loans they will offer buyers. ‘The aftermath of the global financial crisis continues to have a pronounced impact on mortgage and housing markets,’ the CML said. ‘Property transactions look set to remain at the low levels of the past few years.’