Nearly half of lenders have reported an increase in shortfalls after sale of property, a survey by litigation specialists Moore & Blatch reveals.
The research, which included high street banks, building societies and specialist prime and sub-prime lenders, showed that of those who said that they were seeing an increase in shortfalls, 100% thought that they were
arising more frequently compared to a year ago.
House price cooling was the principal factor named by 56% whilst 44% indicated high LTV as the reason.
Paul Walshe, head of lender services at Moore & Blatch, says: The constant increase in house prices has lulled people into a false sense of security.
The recent cooling off of property prices in the market means that buyers are now being left in a vulnerable position.
Buying a property is a risk-based investment and people need to allow for fluctuations in the market.