View more on these topics

Personal loans increase may fuel reposession rise

A rise in unsecured personal borrowing may result in a repossessions increase this year, warns solicitor firm Moore Blatch.

The repossession litigation specialist says the Bank of England figures, which reveal a rise in unsecured personal borrowing, show the pressure home owners will come under this year through mortgage and personal loan repayments.

In a recent survey of UK mortgage lenders, Moore Blatch found that 16% of repossession cases were due to borrowing from other sources.

With unsecured personal borrowing up £2.4bn in February, the biggest rise for more than five years, many home owners may struggle to maintain their mortgage payments and risk losing their homes.

Paul Walshe, head of lender services at Moore Blatch, says: “Unsecured borrowing has been given a boost by lenders reducing the availability of mortgage equity.

“In the past, many people in financial difficulty may have raised finance by withdrawing equity from their property, and are now being forced into taking out personal loans or increasing their overdraft facilities, subjecting themselves to high interest rates.”

He adds: “As a result, their monthly outgoings are increasing substantially, meaning they can no longer afford their mortgage repayments.”

Moore Blatch’s research shows that 73% of mortgage lenders believe the Financial Services Authority should produce guidelines on acceptable borrowing.

A total of 96% say that all borrowing should carry a mandatory risk warning.


UNIFi upgrades its loans portal

UNIFi Partners has upgraded its secured loans portal following revisions to the Consumer Credit Act.Until April 6 the legislation only applied to loans up to a maximum of £25,000 but it now covers all secured lending.The reformed CCA also compels lenders to provide borrowers with information about loan penalties, enforce- ments and arrears.The revisions include […]

Brokers see light in the darkness

Last Monday’s news that Lehman Brothers had suspended lending was another sign of how rapidly the UK mortgage market is contracting.

Landlords confident about B2L future

There are mixed signs about the state of the buy-to-let sector but ARLA’s research into landlord sentiment shows that 90% of them are in it for the long haul, says Mel Dring

Debt Advice Portal appoints Debt Alliance Limited to panel

Debt Advice Portal has added personal bankruptcy management firm Debt Alliance Limited to its debt solutions panel.Debt Advice Portal says that brokers using its service can now offer clients, who are unable to get a mortgage, access to debt management services including bankruptcy.The firm says debt management solutions are attractive to brokers under the added […]

Show me the money – earnings are central to performance in Europe

Equity markets globally currently remain vulnerable to sharp shifts in sentiment caused by either unexpected or unwelcome outcomes in key upcoming political events (the US and German elections, Brexit and the Italian referendum). These top-down influences, combined with the current low global growth environment, will likely lead to broadly directionless markets, and prolong the current low beta return environment. We do, though, […]


News and expert analysis straight to your inbox

Sign up