The story on Mortgage Strategy Online last week stating that 67% of lenders and repossession experts predict a rise in repossessions was astounding – these people must have psychic powers to see such a thing coming.
But maybe it’s not all down to consumers overborrowing – it just might have something to do with lenders maintaining a massive differential between the base rate and the true cost of borrowing.
There seems to be no shortage of money for consumers who wish to borrow on credit or store cards at rates of up to 30%.
But who’s for a first-time buyer rate at as much as 7%? Or how about a tracker deal at 5% above the base rate?
Couple all this with inflexibility towards those in financial difficulties and it’s clear the quoted experts may be right, repossessions may continue to increase. But we must be to blame – surely it can’t be lenders’ fault.
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