Reports have come though this month from the government stating that home repossession orders in England and Wales have hit the highest level since back in the 1990’s. The numbers have become apparent over the last three months, and economy experts say that they fear the situation is set to worsen still.
These reports will certainly be bad news for the Bank of England, with the figures suggesting that the three official interest rate cuts that have been implemented since December have done little to help with the situation. The credit crunch has been responsible for forcing companies to raise their rates again.
The reports have shown that court orders for repossession have increased by 17% in only the first quarter of 2008, compared to last year. This equals approximately 27,500 people being affected by the credit crunch in this way.
The Global Insight has been quoted to say that the situation is set to deteriorate even further, and at a significant rate too. If the economy suffers further and unemployment begins to rise, the problem threatens to get out of hand.
However bad this all seems, we are
still not quite back to the troubles of the 90’s. Although the repossession rate has indeed tripled since 2003, the amount of home owners having to give up their house is still significantly better than it was a few decades ago.
With roughly 12 million mortgages in Britain it is certainly a growing concern for everybody of how much more the market is set to worsen after the dreaded credit crunch. With loans becoming increasing harder to get as well as mortgages, it is hard for people to find a way of surviving this funds troubling time.
The battle between the public and lenders unfortunately does not look to end any time soon. With those with the weaker credit ratings being hit hardest by the lending conditions becoming less generous and more strenuous with repayments and punctuality.
