10
Oct
70% of repossessions are sub-prime mortgages
More than two-thirds of houses recently repossessed were bought
with sub-prime mortgages, according to an explosive BBC
documentary.
Research conducted for the BBC' flagship documentary programme
Panorama found that more than 70 per cent of homeowners who were
recently summoned for repossession hearings had been given the
loans despite their poor credit rating.
The over-representation of sub-prime mortgage holders was
highlighted by the fact that the sector makes up just seven per
cent of the UK market.
Also uncovered by the documentary was that some of those with
sub-prime mortgages are often paying as much as 11 per cent
interest on their loans.
Questioned by the Panorama, the Bradbury family, who are both in
their fifties and receive benefits but currently hold a
£55,000 mortgage at 11 per cent interest, confessed that a
further interest rate rise would make repossession likely.
Mr Bradbury said: "I'm at the mercy of the interest rate. If it
goes up again, I'll struggle, I'll try and meet it. But after that
if it goes up again I can't. We'll just lose the house."
In the last three months 7,000 homes have been repossessed, the
programme makers claim.
