Borrowers 'facing tough 2008'

The Repossessions Advice Centre (RAC) has said that mortgage borrowers face a difficult 2008 as the fallout from the credit crunch continues to impact upon the UK.

Those coming off fixed-rate mortgages will be the most seriously affected, according to the RAC, with many perhaps being unable to afford any kind of new deal.

As a result, the number of repossessions is likely to rise sharply, the organisation warned.

"People have taken out fixed rate [mortgages] within the last two years – a lot of fixed rates have been taken out because of interest rates going up, obviously people have been trying to stabilise themselves," said RAC director Paul Fletcher.

"A lot of these people just aren't going to be able to get a new mortgage product, even with their existing lender.

"I think it's going to be an extremely tough year, and I certainly think we'll see quite a large increase in repossessions over that period of time. And it is the clients who are with the sub-prime lenders who are going to be suffering," Mr Fletcher added.


Finance your build or renovation with one of BuildStore's unique finance packages


© Adfero Ltd