Warning over repossessions

Those with mortgages face an increased risk of losing their homes to repossession this year, an economist has warned.

Simon Rubinsohn, senior economist for the Royal Institution of Chartered Surveyors (Rics), said: "The more challenging climate for the housing market will lead to a rise in repossessions over the course of 2008."

He was responding on behalf of Rics to figures from the Council of Mortgage Lenders showing that the number of repossessions in 2007 (27,100) was ten per cent less than the 30,000 predicted.

An increased chance of having problems with a mortgage may prompt some to consider having a mortgage-free home constructed through the self build method.

Mr Rubinsohn qualified his remarks by suggesting the risk or repossession would ease with more interest rate cuts.

The CML figures has indicated that the rate of repossessions in 2007 was virtually unchanged from the first half of the year to the second.


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