Stable interest rates 'helping limit repossessions'

Home repossessions are at a two-year low, according to new figures from the Financial Services Authority FSA.

In the three months up to the end of March 2010, 10,500 homeowners had their properties repossessed, 11 per cent fewer than in the previous quarter.

Chris Jenkins, spokesperson for The Homeowners Advice Centre, described it as a "reflection of the way in which interest rates have stabilised out."

"A lot of people in the last two years may have come off fixed-rate, or maybe even discount rate mortgages," he commented.

However, Mr Jenkins went on to say that if interest rates go up, the number of repossessions is also likely to rise once again.

"In that respect it could be a false statistic, but I think it is an indication that mortgage lending is more realistic," he claimed.

Mr Jenkins suggested that repossessions can be minimised if homeowners resist the urge to upsize too quickly.

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2010-06-28 10:36:33 © Moneyextra.com