No signs of improvement for borrowers in arrears?

Posted: 16 Aug 2010 09:01:29 GMT

There are a number of borrowers who are in arrears and there is no sign of the situation improving, one expert has suggested.

Director of LandlordZONE.co.uk Tom Entwistle said although there appears to be progress in the sums unpaid situation, there is still a hard core of individuals with outstanding debts.

"All the indications are that arrears can be contained at roughly the present levels, but certainly there will be no dramatic improvements and there is always the prospect of the situation worsening in this short-term," he added.

Mr Entwistle explained if inflation cannot be contained, interest rates will have to go up, which could worsen financial problems.

However, he stated rental demand is still strong, as some people who would have previously bought a house are now at a stage where homeownership might not become a reality.

The specialist's comments follow the release of a report from the Council of Mortgage Lenders, which revealed the number of properties repossessed by mortgage lenders dropped during the second quarter of this year.
 

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