Repossessions Could Be Influenced By Interest Rate Increase

 

An analyst has claimed that the number of UK properties to be repossessed could be affected by an increase in interest rates.

The senior technical manager at John Charcol, Ray Boulger, pointed out that the rate at which repossessions are taking place in the UK can be altered by changes in the interest rate. As a consequence, the Bank of England has a great deal of control over this issue.

For example, he continued, a large increase in interest rates could push up the instances of repossessions considerably.

These comments have been made in light of findings presented in a report organised by Shelter, which stipulated the areas and homeowners in the country that would be most likely at risk of suffering from repossession, with Corby, the east Midlands, being most at risk.

Mr Boulger said that "the longer the timeframe before bank rates start to go up, the less quickly I think we will see repossessions go up because clearly one thing that would tend to push repossessions up is if interest rates go up too quickly."

A small increase in the number of repossessions would not be “particularly surprising” according to him, however, it would surely provide evidence of the link between these occurrences and interest rates.


<--- return to news section

property agency training - property practice course

 

4 Everything Property4 Everything Property - UK Property Directory

4 Everything Property is a UK property directory bringing you the latest property news and resources. Register now for FREE newsletters and updates. Plus, if you are a property agent or property industry service provider you can also advertise in the directory for FREE.

 

© 2005-2012 Property Agency Training - Design by The Business Ladder (UK) Limited | Legal Information | Site Map