PPI claims could point to increase in repossessions in 2009

Posted: 29 Jan 2009 09:07:32 GMT

The Association of British Insurers (ABI) has found that the number of claims made to private payment insurance (PPI) policies more than doubled throughout 2008.

The figures, which rose from 8,772 in November 2007 to 19,105 in November 2008, point to the likelihood of a rise in repossessions throughout the year as many more households face unemployment.

Nick Starling, the ABI's director of general insurance and health, said: "Many people are already feeling the effects of the recession, through rising unemployment.

"Losing your job is stressful enough, and even more so when you don't have any protection in place to help ease the financial burden. These figures are alarming, showing just how valuable PPI, and other types of protection insurance, are during difficult economic times."

Many homeowners may be assessing the value of downsizing their homes, which could ease high mortgage repayments and could prevent repossession.

Those contemplating the sale of their home could find that selling their property online can benefit them, as selling a property online could reach more buyers than a traditional estate agent's window.


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