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Repossession figures issued this week by CML, were not as high as previously expected. However CML have warned that during 2009 these figures could rise substantially, as the credit crunch begins to have a serious impact on the housing market.
Factors affecting the repossession rates include mortgage costs being at a record high for first time buyers. Statistic s show that even at the height of the housing boom in the 1990's mortgage rates were cheaper for first time buyers than there are now.
Cheap mortgage deals seem to be a thing of the past for those, now trying to get their foot on the ladder. The Us sub- prime lending crunch has lead to tighter criteria for lending in the UK with many would be first time buyers not even able to obtain a mortgage.
These would were lucky enough to get a mortgage a now devoting nearly 35% of their income to cover their mortgage. This is in contrast with the private rental market, which has seen rent rates keep pace with earnings, rather than fly ahead.
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