Repossession fears spreading

16 2008
The spectre of repossession is seemingly hovering for UK homeowners, with one in five admitting they have real fears in the current economic climate.

That is according to a new poll by credit reference agency Equifax, which has further underlined the security provided by renting as homeowners' confidence continues to plunge.

The research worryingly revealed that two-fifths would voluntarily surrender their homes if faced with the prospect of being unable to honour mortgage repayments.

Equifax external affairs director Neil Munroe said: "The credit crunch is taking its toll on homeowners.

"And it is particularly worrying that 38 per cent said they would voluntarily give up their home if they couldn't afford monthly repayments.

"This is a very drastic measure and really should only need to be taken as the very last resort."

In addition, 80 per cent of those surveyed felt that there is not enough access to affordable housing at present, yet the majority still claimed they would stretch themselves to the financial limit to get onto the property ladder.

The study also revealed that 72 per cent of homeowners would not consider participating in a sale and rent back scheme if faced with the possibility of repossession.
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