Forecast: Home 'repos' will soar in 2008

LONDON, Feb. 9 (UPI) -- British researchers forecast home repossessions will break a 12-year record high in 2008, a report said.

The projection follows 2007 when banks and building societies reclaimed 27,000 Britsh homes, an increase of 21 percent from 2006, The Daily Telegraph reported Saturday.

"The financial pressure on many homeowners is increasing, and it seems certain that repossessions will trend up significantly during 2008, particularly if the economy suffers an extended marked slowdown and unemployment starts rising," economist Howard Archer said.

A report by the Credit Council Mortgage Lenders projects 45,000 houses will be taken back in 2008 because of lenders denying mortgages to people with low credit scores.

The Citizens Advice charity said many homeowners are being roped into sale-and-rent-back situations by firms that buy houses from floundering owners for low prices and then charge them rent to stay there.