Professionals at risk of repossession, expert says
Professionals at risk of repossession, expert says
Monday 3rd November 2008
Aaron Turner, founder of property website Look4aproperty.com, said that many Britons took out self-certification mortgages when the economy was booming and they were living off inflated salaries and high bonuses.
But now the economic outlook is far gloomier, many of these workers could now be struggling to meet their mortgage repayments, he suggested.
Self-certification mortgages are primarily aimed at people who are self-employed, but these policies are often based on declarations, which would have featured bonuses and commissions achieved when the economy was in a healthier state, Mr Turner noted.
He added: "When the economy starts to deteriorate that leaves the lenders badly exposed."
The Council of Mortgage Lenders reported earlier this month that it expects around 45,000 properties to be repossessed in 2008, the equivalent of 0.38 per cent of all mortgage holders.
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