In the U.K. a foreclosure is called a reposession. Market analysis shows U.K. mortgage issues mirroring trends in the United States, as home owners find it difficult to refinance. The Council of Mortgage Lenders said the global credit crunch was exacerbating trends that were already emerging in the housing market. It said it had already been expecting arrears and possessions to rise, but the situation would be worse than previously expected because of the tighter lending criteria many mortgage lenders are now imposing.
The number of people whose homes are repossessed looks set to soar next year to levels not seen since the 1990s house price crash, it was predicted. The CML warned the five interest rate rises seen since the summer of 2006 would contribute to a 50% jump in the number of homes that are repossessed during 2008. It seems like Americans are not the only ones singing the mortgage blues. Is this a sign of a homogenized global community, or perhaps just profit takers in a run-away mortgage lending industry?