Manchester is Britain’s Debt Capital

According to ITV’s documentary Repossession Repossession Repossession (to be shown tonight at 10.35pm on ITV1) the northern city is where the highest percentage of those with serious debts and facing repossession, can be found.ITV Programme Repossession Repossession Repossession

The programme will claim that 29% of households in Manchester are facing serious financial problems and possibly home repossession.

Fuelled by easy credit access in the last 10 years, many of those in trouble are under 30. They have grown into adulthood being able to constantly re-finance their credit card debts until at some point the only option may have appeared to be consolidating their loans and securing them against their homes.

Now the credit crunch has forced lenders to be ultra cautious as to who they lend to (or the less reputable to be able to charge ever more disproportionate interest rates) most of those with high Loan to Value mortgages (85% and above) also have secured debts that in some case can mean they are more than 110% mortgaged.

In this case even the sale of the property would not realise enough equity to repay all the loans.

Lenders are increasingly using the repossession process to recover their money, some of them on the basis that in the current financial climate the money is better off with them than being risked as a total loss if another of the homeowner’s creditor decided to repossess.

The programme can be seen 5th Feb 2008 at 10.35pm on ITV1

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