An increase in unsecured personal borrowing shown in the recent Bank of England figures may result in an increase in the number of home owners looking to avoid repossession.
In a recent survey of UK mortgage lenders,it was found that 16% of repossession cases were due to borrowing from other sources and home owners becoming over committed financialy by taking out personal loans and increasing their overdrafts.
With unsecured personal borrowing up £2.4bn in February, the biggest rise for more than five years, many homeowners may be looking to avoid repossession. With all the additional borrowing 96% of Mortgage lenders believe that all borrowing should carry a mandatory risk warning as it was felt many people were not aware of the risks associated with unsecured borrowing.
