Firstrung: Lack of affordable mortgages responsible for repossession numbers

Posted 2008-05-11

The number of people having their homes repossessed is due to the fact that there is a shortage of affordable mortgages on the market, an industry figure has claimed.

Paul Holmes, operations director at Firstrung, has claimed that the recent figures released by the Ministry of Justice, showing that repossessions in the UK have increased, is due to the fact that mortgage lenders have removed many of their products from the market.

This has led to people coming off their existing deals and onto packages that they cannot afford, therefore leading to them eventually losing their homes.

"Its simply affordability. Now people are coming off those teaser rates they are finding that their payments are ballooning by up to 25 to 35 per cent in some instances," Mr Holmes said.

The MoJ recently revealed that there were 38,688 repossession claims in the first quarter of 2008, compared to 33,344 in the same period in 2007.

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