House repossessions are increasing

Filed Under Finance

House reposessions are increasing, according to a report by RICS, the Royal Intitution of Chartered Surveyors. They are predicting that there will be 124 repossessions a day in 2008.

With houses becoming less affordable to buy and own after the latest interest rate rises - though a trip to snap up a bargain at the property auctions might be beneficial soon if so many repossessed houses are to be sold - more home owners are feeling the pinch.

What is surprising is that although repossessions are increasing and the house market is slowing down, consumers are still out there spending and borrowing at “uncomfortable rates”.

Unfortunately the full effect of the latest interest rate rises is yet to be felt and many people will have to cope with large increases in mortgage payments when their fixed rate mortgage term exnds soon.

Couple this with high consumer spending and borrowing, then I fear that the RICS prediction of so many house repossessions will come true next year.