For every 500,000 people becoming unemployed there will be a further 20,000 repossessions, says a new report from CB Richard Ellis.
‘Loss of income through unemployment is the major contributory factor towards arrears and repossessions,’ says the report.
The Government support for mortgage interest payment kicks in 13 weeks after being made unemployed.
The report highlights the most groups most vulnerable to repossession being the sub-prime market and the buy-to-let borrowers.
‘High mortgage rates are a particular problem for borrowers coming to the end of their current mortgage deal. These homeowners are finding it difficult to obtain a mortgage on comparable terms and may not be able to afford the higher rates,’ it says.
‘There are a large tranche of vulnerable borrowers which could increase the severity of the problem,’ the report concludes.