Repossession hotspots revealed ~ Debt Managements and Consolidation

A charity has located the UK’s repossession hotspots and predicted further increases in the coming months.

The charity warned that people in these areas are at a serious risk of having their homes repossessed. According to the Northants Evening Telegraph the charity has estimated that ‘three out of 10 people now seeking the charity’s help is as a result of them being at risk of losing their home, whether they own it or rent it’. Residents in the North are more likely to have their homes repossessed, according to research conducted by charity, Shelter. Corby has been identified as the repossession capital, where residents are most likely to have their homes taken by their bank or building society. The report found that 7.56 possession orders were issued to every 1000 homeowners in Corby, nine times higher than England’s lowest rate in West Dorset. Rachel Wilson, Chief Executive of Accommodation Concern, which covers Corby and Kettering, told Northants Evening Telegraph: “At the moment lenders are being tolerant but our fear is that when property values go up they will be less understanding. “We are seeing people being made redundant and families go from two incomes to one and they can’t keep up with their payments. We have seen families where both the wage-earners have lost their jobs.“We are working flat out to help people. Some people wait until they are within days of being on the street. Our advice is to get help as soon as possible – as soon as people are in difficulty.” Despite experts claiming that repossession rates are lower than they anticipated at the start of the recession due to lower than expected interest rates, they believe repossessions are set to rise. The charity has estimated that nationally repossessions will rise to 45,000 next year, and the threat of interest rate rises will be a major contributor. Shelter is warning homeowners who will be hit by these rate hikes to begin preparing for higher mortgage costs now. Campbell Robb, Chief Executive at Shelter said: “This research paints a frightening picture of repossession hotspots across the country where homeowners are literally on the brink of losing the roof over their head. “We know only too well that the combined pressures of high inflation, increased living costs and stagnant wages are really taking a toll on people. All it takes is one thing like job loss to top people over the edge and into the spiral of debt, repossession and ultimately homelessness. “And with interest rates due to increase in the near future this research is a clear warning sign of difficult times ahead for many thousands of homeowners across the country. “It is absolutely vital that struggling homeowners, in particular those at risk when interest rates rise, get help before things spiral out of control and they risk losing their home.”
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