Threat of repossessions – very real
According to Richard Banks, chief executive of UK Asset Resolution (Ukar), which manages many thousands of mortgages in the currently nationalized lenders Bradford & Bingley and Northern Rock, as a country, we should be concerned about what will happen if interest rates rise.
Mr Banks, who is in the know in a big way, described what could happen if interest rates rise using the word “scary”. He also advised that, even with interest rates remaining at historic lows over an extended period of time, some 23,000 out of Ukar’s 750,000 borrowers are already more than 6 months behind with their mortgage payments. Others say that repossessions are inevitable and that the policy of the Government putting pressure on lenders to put off repossessing is simply storing up trouble and putting off the inevitable.
What do you think ?