Homeowners “forced” to sell due to mortgage concerns

By MoneyhighStreet Staff. Published on November 21, 2008 This post currently has no comments.

Selling up
Estate agents have reported large numbers of homes being put on the market due to their owners being unable to meet their mortgage repayments.

Figures released by the National Association of Estate Agents (NAEA) in the Times newspaper today show that 20 per cent of the homes being sold by half of agents are from these "forced downsizers".

Moreover, 20 per cent of agents said that half the homes they receive instructions to sell were being sold for this reason.

The credit crunch, which has led to many mortgage firms toughening up their lending criteria, is a major force behind this trend.

Cheap loan deals have largely now disappeared from the market due to the financial crisis.

NAEA chief executive Peter Bolton King said: "It is those homeowners who were on cheap fixed-rate mortgage deals who cannot replace them and are struggling with the rise in repayments [who are the forced downsizers]."