Repossession levels could exceed 1990s levels, insurer warns

Thursday 29th May 2008

The number of homeowners who are expected to run into difficulty paying their mortgage over the next year could surpass levels seen in the housing crash of the early 1990s, insurer Axa has warned.

According to the company, around 1.8 million Britons are set to face problems paying their mortgage debt in the course of the next 12 months.

Axa calculates that this leaves more people at risk of losing their home than between 1989 and 1992 , when 1.6 million struggled to meet repayments.

The situation for those at risk is exacerbated by the fact that almost 80 per cent of homeowners have no insurance to cover their repayments in the event of losing their job.

Iain Mallon of Axa said this was indicative of the fact that consumers have "failed to learn the lessons" of the last time the housing market went into decline.

He added: "It is surprising so few have plans to provide for themselves and their families, given how rapidly things can change."

The difficulty consumers are experiencing servicing their debt has been attributed to credit card debt built over the boom years of the last decade catching up with consumers, coupled with higher mortgage repayments as well as soaring food, energy and fuel costs.

Related News

<< Back To News Listings

News Article Search