4.2 million Britons fear repossession

New research from consumer champion Which? reveals UK homeowners to be overwhelmingly worried about job security, negative equity and repossession in the current economic climate.

62% of workers are fearful of losing their job, with 43% worried that if they or their partner lost their job, they would be unable to pay their mortgage.

4.2 million mortgage holders are concerned that they will slip into negative equity in the next 12 months as property prices continue to fall across the country.  Over two-thirds of homeowners believe the government should do more to protect those in danger of losing their homes.

Doug Taylor, of Which? is calling for stronger measures to protect homeowners from the consequences of the current economic climate, saying,

“It’s dreadful that six million people fear losing the roof over their heads. With people spending sleepless nights worrying about job losses and repossessions, the Industry needs to demonstrate that it wants to win back the trust of the British public by fully embracing Government initiatives.”

Which? is pushing for various protection for consumers, including a ban on 100% mortgages, better controls of credit, protection for homeowners in danger of losing their home due to unsecured debt, and government action on mortgage arrears.

The FSA is currently considering various measures to prevent banks lending irresponsibly, including regulating the loan-to-value and loan-to-income ratios.