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Interest rate cuts `were not anticipated by consumers` Nearly half of young mortgage holders `need help from family` Abbey cuts mortgage rates New arrears guidance issued by CML Mortgage fraud `on the up` CML expresses concerns over sale and lease back schemes Business groups call for further rate cuts Interest rate cut `will help some struggling borrowers` Mortgage approvals `hit by continued market uncertainty` Company reduces rate of home loans Mortgage rates `to rise` Consumers `will be hit by reduced credit` `Nearly £20k` needed to secure a mortgage Borrowers urged to take advantage of good mortgage deals Mortgage lending falls in August Variable-rate mortgages `increasingly appealing to homeowners` Parents `relying on loans to cover school fees` Further mortgage rate cuts announced Remortgaging `on the rise` Mortgage lenders call for swap plan renewal

Overstretched families `may face repossession`

08/08/2007

Financially-overstretched families are at risk for their properties being repossessed by lenders, according to an expert.

Mark Lance, a spokesperson for the Repossession Specialist, said that rises to the base interest rate have caused problems for those who have mortgage debt - particularly with a discount or variable mortgage.

"When you add these factors to an already inflated housing market, naturally more and more people are becoming overstretched financially," he remarked.

He explained that the mortgage arrears situation is "concerning", adding that it raises questions about whether homeowners had been properly advised before taking on debt.

"The more worrying situation will occur in the next 12 months, as many people have just got into arrears recently with the rate increases and not yet been repossessed, so the true figure is only likely to get worse before it gets better," said Mr Lance.

His comments come after a report from the Council of Mortgage Lenders indicated that the number of properties taken into possession during the first half of 2007 rose by nearly 18 per cent.

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