One million people 'could lose their homes'
(31 January 2008)

One million homes could be at risk of repossession as banks become tighter on missed payments, warns the Financial Services Authority (FSA).

The authority has warned that if the current economic slowdown persists then up to 123 homes a day could be lost.

The FSA has identified three groups at risk: people who have borrowed three or more times their salary, people who have taken out a mortgage for more than 25 years and people who've borrowed 90 per cent or more of the value of their home.

In total 1.04 million people are in two or more of the above categories and are identified as "most likely to default on loan".

In addition the FSA's latest Financial Risk Outlook report predicts that house prices will not rise this year, compared to a 4.8 per cent rise last year and 10.5 per cent rise in 2006.

Shelter Scotland, a housing charity, has been inundated with calls for help as more people fear defaulting on their mortgage, reports the Press Association.