View more on these topics

Brokers’ fears at repo rise

Brokers fear repossessions could continue to rise and warn borrowers stuck on standard variable rates are most at risk.

The FSA published its lending data this week which shows the number of repossessions rose by 5.8 per cent from 9,134 to 9,760 in the year to September 30.

Last month, the Council of Mortgage Lenders said it might lower its repossession forecast of 40,000 for 2011 after year-on-year figures in November showed a fall of 4 per cent to 27,500. The CML statistics show only regulated mortgages, where the FSA data includes regulated and unregulated loans.

Your Mortgage Decisions director Dominik Lipnicki says: “If the economy gets worse, people living in areas with falling house prices and where the majority of people are employed in the public sector are more likely to be repossessed. People stuck on standard variable rates are massively at risk, especially as we have seen some lenders increase their SVRs recently.”

Lentune Mortgage Consultancy director Stuart Gregory says: “If the economy gets worse and lenders start to react by raising their rates, more people will be in trouble.

“People need to be on top of their situation and take it on themselves to see if they should change mortgages. If people do not do that, they could be in for a bit of a shock, especially those on standard variable rates.”

Recommended

11

Goodwin may face criminal charges over RBS accountancy failings

Sir Fred Goodwin may face criminal charges after the FSA’s report into the near collapse of Royal Bank of Scotland suggested that the bank’s directors broke UK accountancy laws. Despite highlighting a number of failings in the report, FSA chairman Lord Turner said yesterday that there was not enough “sufficient evidence” to punish the RBS […]

Zemek hands Axa IM sterling bond fund to Hayes

Axa Investment Management has announced that Nick Hayes has replaced Theo Zemek as manager on its £130m sterling corporate bond fund. Zemek is now set to focus on her role as global head of fixed income at Axa IM, she is also a member of the Axa IM board. Zemek will remain as deputy manager […]

Octopus chief investment officer Lothar Mentel made redundant

Octopus Investments chief investment officer Lothar Mentel has been made redundant, alongside five other staff as part of a staff review. The other five members of staff were in customer services and operations. Mentel joined Octopus just over three years ago and left on December 12. Octopus is not replacing him with responsibility for continuing to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com