We already know that many have faced repossession as a result of the recession, rising unemployment and falling house prices, but according to a claim from economist Ian Shepherdson, this could continue till 2011.
Mr Shepherdson was giving a talk in Harrogate at the Chartered Institute of Housing Conference and Exhibition and said that as unemployment is set to rise this will continue to impact upon repossessions.
He said: “I hope and I think that they won’t go as high as they did in the early ’90s when interest rates were fantastically high, but they will go substantially higher and we are going to have a big repossession wave.”
It is not unusual for people to be falling behind or struggling with their mortgage payments at a time like this, so what can be done?
It is important to speak to your mortgage lender as soon as you can. This might be scary but they may be able to help through a mortgage payment holiday if that is an option on your mortgage, switching you to interest only for a period or other options.
If you are out of your introductory deal, speak to a CeMAP trained mortgage advisor who can advise you on the best deal for your circumstances. If you are unemployed, then a remortgage may not be an option but most mortgage advisors will be happy to get you the advice you need.