With the costs of living continuing to rise and salaries that don’t keep pace, the threat of repossession is a scary but very real possibility for many UK homeowners.
But recent figures show that despite being forced to leave their homes for defaulting on their repayments, properties are being sold on for less than the outstanding mortgage amount.
Although the number of homes repossessed has fallen to its lowest since 2007, a new report by Fitch Ratings has indicated that almost 90% of repossessed homes are sold on at a loss. The Residential Property Value Analysis Report claims that many homes are being sold for less than the amount remaining on the mortgage, due to the highly inflated property prices at the original time of purchase.
The biggest losers in terms of final sale price are, according to the report, flats and new-build properties.
Source: The Telegraph