20
Jul
Housing market growth 'could lead to more repossessions'
Growth in the housing market could have an effect on the number of
properties that are repossessed, according to the Consumer Credit
Counselling Service (CCCS).
Delroy Corinaldi, director of external affairs at the CCCS,
suggested that as more houses for sale enter the property market
and buyer demand increases, lenders are likely to be less lenient
towards people who have property debts.
He said that while they had shown debtors clemency during the
recession, this was "partly determined by the markets".
Now that the property industry looks to be improving, they may come
down harsher on anyone who cannot keep up with payments.
Mr Corinaldi added that lenders are also reluctant to permit
debtors to "switch to inter-only mortgages as a short term
solution".
This comes after Rightmove reported yesterday (July 19th) that more
than 30,000 properties went up for sale every week in July - an
increase of 45 per cent during the same period last year.