(1888PressRelease)
September 08, 2007 - With the US sub-prime mortgage market currently in crisis, many analysts are predicting that we will see at least some kind of effect in this country.
Danny Gabay, a former member of the Bank of England's Monetary Policy Committee (MPC), believes the UK mortgage market may be overstretched.
Speaking on BBC Radio Four's The World Tonight programme, Mr Gabay said that things are looking precarious.
"The UK has a very overextended household sector - that everyone was aware of," he said.
"The UK household sector owes about 155 per cent of its entire income. We owe one and a half times what we have and anybody who is overextended is vulnerable."
His comments follow recent figures from the Council of Mortgage which showed that repossessions have increased by 30 per cent between the first half of 2006 and the first six months of 2007.
Julian King of National Homebuyers advises people facing repossession to consider all alternatives: "Some feel that they are pressured into a repossession, as lenders will not allow borrowing.
"We have saved thousands from having their property repossessed with our simple Sell and Rent Back solution. Providing the homeowner has some equity in their property, we are able to purchase it for cash - within days and then rent their property back.
"This prevents repossession, allows the homeowner to pay off debts and remain living in their home."
National Homebuyers are the UK's largest fast property purchase firm and the industry leaders in "Sell and Rent Back" or "Sell and Stay" arrangements.
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