Repossessions Increase

The latest figures from the Ministry of Justice show that the number of mortgage possession claims increased by 16 per cent in the first quarter of 2008. It is not surprising as the changes in the mortgage market have made it difficult to get funds.

One mortgage broker told www.cosmicremortgage.com this time last year there were plenty of mortgage deals around, now there are under half the amount available to us. Many site the Northern Rock problems as the start of the mortgage market change. The Northern Rock together product was used by many buyers who took advantage of the mortgage and unsecured loan facility that was at the same rate as the mortgage. A borrower could get up to 125% of the value of their home with the mortgage and loan. Now these borrowers are looking to remortgage and are finding that they can only get a maximum remortgage of 80% of the home value. Since prices have remained the same and in some areas decreased the remortgage is nowhere near enough to cover the total mortgage and loan value. These borrowers are now finding that the unsecured loan part of the deal has now reverted to 15 percent and above, and Northern Rock variable is around 7.5 percent, in some cases this can add over £200 a month to there monthly repayments.

So what are the options for these borrowers? It is a very unfortunate situation however if you are having problems making repayments don’t panic. More and more brokers are now taking on a debt management role for their clients, there are many different type of debt schemes that will allow you to remain in your home until the market improves, if you are struggling act now.

www.cosmicremortgage.com has now sourced brokers who are able to advise on debt schemes. If you find yourself in this situation you can complete a quote form at www.cosmicremortgage.com for more information.

Article Source: Repossessions Increase

Published on www.ArticleMark.org