You are here: cherry > Press releases for August 2010 > Facts speak louder than forecasts

17 August 2010

Mortgage brokers should take notice of the facts and not be lulled into a false sense of security by forecasts, says specialist sale and rent back firm, Residential Property Solutions Ltd, following publication of the CML’s revised repossession figures. The Council of Mortgage Lenders has downgraded its repossession forecasts from 53,000 to 39,000 and has also downgraded its arrears figures from 205,000 to 175,000 for mortgages which are 2.5% or more in arrears. Pete Thomson, Managing Director of Residential Property Solutions Ltd, said: “I hope the CML’s revised forecasts are correct, but there is strong evidence which suggest that their dreams may not come true. Citizens Advice has reported that 25,360 people sought its advice between April and June this year regarding mortgage payment problems and has said that it believes the numbers can only escalate. “Lender forbearance has, in many instances, simply delayed the inevitable and public sector job cuts are going to put a huge strain on the finances of thousands of homeowners. What’s more, when interest rates do rise, as they will do eventually, thousands of borrowers are going to suffer payment shock. For some, it will be the straw that breaks the camels back.” Residential Property Solutions Ltd says that the recently regulated sale and rent back sector now offers struggling homeowners a practical, safe and immediate solution to the spectre of repossession. Thomson concluded: “Mortgage brokers and lenders should consider sale and rent back as a potential solution for hard pressed homeowners. Regulated firms such as Residential Property Solutions Ltd will arrange for all homeowners to receive professional advice before committing to a deal.” Full information about the services offered by Residential Property Solutions Ltd is available at: www.therpsgroup.co.uk or by phoning 0800 612 7525. **ends**

Click below to download the full press release