Financial planning services Sharp Rise in Repossessions may Happen
According to a report by the centre for economics and business research (CEBR) a sharp rise in the number of repossessions this year has been predicted. In this kind of situation financial planning services firm has to play a major role.
London (Index Asset Management) 6th May, 2008: The economic forecaster is expecting the number of repossessions figure to increase by 23%, to 33,400. CEBR has based its prediction on the rising cost of mortgages, tighter lending criteria that will leave some homeowners struggling to remortgage, and higher fuel and food prices.
This has been also suggested that the burdens listed above are borne by a population with record levels of personal unsecured debts. Even if the problems on the money markets become less, CEBR believes mortgages will remain in short supply this year, and that interest rates will remain above the Bank of England’s base rate.
According to a senior economist at the CEBR, Nur Ata, homeowners will continue to spend more on their mortgage costs and a rise in the number of repossessions is inevitable.
In addition, there are also predictions that house prices will fall by 10% in the next two years and that the number of transactions will decline by 25%. However, comparisons with the housing market crash of the early 1990s (when the repossessions were running at an annual 75,000) should be made with caution. It was largely the result of a failing economy and CEBR does not expect a similar scenario today.
If you are taking the services of a financial planning services firm then make sure that it has experts in mortgages and loans. Because current market would shows a sharp rise of issues like these worth dealing.
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