As interest rates start to rise again from their historic lows, the debt management problems of many Scottish homeowners could soar fuelling higher repossession numbers.
According to housing charity, Shelter Scotland, many households in Scotland will be unable to keep hold of their properties once interest rates rise as costs continue to increase.
Sheriff Court figures show that more people are facing the loss of their home in Scotland. The statistics show a 20 per cent increase in mortgage actions taken to court in 2008-09, with a rise of 50 per cent in decrees granted.
Graeme Brown, Director at the charity, said: “Radical action is needed at a time when more families than ever are losing their homes. Without that repossessions are set to soar.
“But improved safety nets at a time of recession, is only one part of the picture. As first time buyer numbers plummet, protections for homeowners must be matched by protections for tenants.
“Unless we get a better balance in the housing market we are already sowing the seeds of the next boom and bust cycle.”
Ivan Cooper, Chairman at debt advice specialists Chiltern, said: “People have been struggling despite the interest rates being at a historical low.
“As this goes up, as it inevitably will, more people than ever may face increasing debt problems and potentially losing their home.
“Seeking impartial advice from a reputable provider, like Chiltern, can help eviction be avoided in many cases – as often there are underlying issues with the debt management of unsecured balances.”
