Home owners face more repossessions

With harsh government cuts across the public sector predicted over the next few years, we are likely to see an increase in mortgage arrears and possessions across the UK. It is predicted that more public sector employees, especially in the North East, who have a greater dependence on public sector jobs will be disproportionally hit by the cuts - and their knock on effects on the owner occupation.

Although the government hopes that private sector growth will be able to counterbalance the losses, it's unrealistic to expect it to absorb such a large percentage of the workforce. It is inevitable that thousands of homeowners will come under intense financial pressure over the next four years. Which will undoubtedly push up mortgage arrears and possessions. Until now, repossessions have been lower than previously anticipated, with 23% less than expected in the first part of the year compared to 2009. Interest rates currently at record lows will only increase over the medium-term and this will heap additional pressure on borrowers trying to keep up with their mortgage payments. The effects will be widespread, but will vary across the country.