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Rising repossessions `down to borrowers and lenders`

09/11/2007

Borrowers and lenders must accept the blame for rising debt problems and house repossessions, a financial specialist has claimed.

Consumers have got into the habit of paying bills with credit cards, building up debt that they then pay off by remortgaging their property, according to the director of the Repossessions Advice Centre (RAC).

This, in turn, is expected to lead to a number of people not being able to pay their mortgage repayments, which will lead to repossession of the property, David Warnes stated.

Earlier this week, the RAC said predictions from the Council of Mortgage Lenders for a 50 per cent rise in repossessions during 2008 are "conservative"

Mr Warnes added: "Had people decided that they ought to earn money for the petrol in their car rather than putting it on credit then maybe they wouldn`t have got into the trouble they`re in."

The RAC is designed to help people find their way out of repossessions situations.

Many debts unaffected by base rate cut 09/01/2009 - Yesterday, many borrowers welcomed the Bank of England’s base rate 1.5% base rate – an historic low 08/01/2009 - Today’s base rate cut by the Bank of England’s Monetary Gas price cuts expected 07/01/2009 - Energy company Scottish Power has announced the launch of a Personal debt about £1.5 trillion 07/01/2009 - The UK’s personal debt stands at around £1.5 trillion, according