Bad Credit Experts Warn Government Cuts and Tax Increases Could Raise Repossessions
Economic experts are warning that the planned government cuts, coupled with tax increases may well result in repossession rates equalling the record highs of 2009.
This has been backed up by the leading credit rating agency Standard & Poor who believe the new Coalition Governments expected implementations could “significantly test” some mortgage borrowers.
“The house price crash did not do enough to bring the average cost of a home in line with household incomes”, said a spokesperson for Bad Credit Loans 4 You, a UK specialist in sourcing bad credit loans.
“Many homeowners will find they are still stretching themselves beyond their limits”.
In recent years, after pressure from the government and some counselling services, UK lenders have been exercising a period of forbearance (holding back) over mortgage arrears and some bad credit.
This has led to repossession figures being below what was previously estimated, but there are a high percentage of subprime borrowers throughout the UK who are now in arrears.
“Any significant number of job losses or a big jump in interest rates could cause a huge collapse and create a wave of repossessions, which makes today’s grim warnings of huge job losses within the public sector even worse, as people are not only looking at losing their jobs but possibly their homes as well” warned a spokesperson for Bad Credit Loans 4 You.
The Consumer Credit Counselling Service (CCCS) has recently issued similar warnings.
During August 2010, CCCS revealed that they had a number of clients with suspended repossession orders which lenders had not yet enforced, despite borrowers failing to meet repayments ordered by the courts.
CCCS are concerned that should the banks and building societies decide to harden their stance on these bad credit borrowers, then repossession figures could again rise to the heights of 2009.
The influential Organisation for Economic Co-operation and Development (OECD), recently revised its growth forecast downwards for the G7 leading economies as the global economic recovery was shown to be slowing faster than expected.
Fortunately the think tank believes that a return to recession is unlikely, but “great uncertainty” remains.
OECD’s chief economist Pier Carlo Padoan, commented on this by saying: “The uncertainty is caused by a combination of factors, but it is unlikely that we are heading into another downturn.”
The OECD’s prediction comes as the National Institute of Economic and Social Research (NIESR) said the economy experienced a slowdown in growth.
Figures showed that the economy only grew by 0.7% in the three months to August compared to 1.3% in the three months to July.
The Institute confirmed in its latest report that “Unfortunately, the rate of growth will continue to decelerate over the coming months,”
“The pace of economic growth may have softened in the three months to August, but is still a robust rate for the UK”.
This should prove to be good news for those bad credit borrowers who are concerned about losing their jobs in the private sector.
“Unfortunately the government is staying true to its word by cutting down on public sector spending, which will mean widespread job losses” confirmed the Bad Credit Loans 4 You spokesperson, “but if the economy continues to recover, then it is inevitable that jobs will soon become available within the private sector”.
Bad Credit Loans 4 You helps out people who fear they have been blacklisted because of CCJ’s and Defaults.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
For help, phone 0800 011 4503 or visit
http://bad-credit-loans-4-you.co.uk/bad-credit-tenant-loans.html
Notes for Editor:
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Loans 4 You of London Ltd
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Bad Credit Loans 4 You was formed in April 2010, bringing together a team of specialists that together offers over 50 years of expertise to help applicants gain the unsecured loans they need.
From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing loans for people with bad credit.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading. The company is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
Bad Credit Loans 4 You has a senior management team with over 50yrs collective experience providing vital knowledge of the bad credit loans sector & helping those with CCJ’s, defaults, late credit card payments, mortgage arrears & other bad credit rating problems.
Our mission is to aid people who have been discriminated against because of their bad credit loans problems. We assess bad credit loans applications on your current budget and ability to repay bad credit loans, not just your bad credit rating.
