More than 3000 Scots face having their homes repossessed this year and worse is to come in 2012.
Financial company HML analysed 320,000 mortgage accounts and has predicted that 3279 Scots will lose their homes in 2011.
Across the UK they are forecasting 33,257 repossessions over the course of the year.
They forecast that Northern Ireland and Wales would have the highest rate of repossessions this year and Scotland will also be above the national average.
Although the number of repossessions is expected to be down on last year, they are expected to rise again in 2012 particularly if the Bank of England opts to raise interest rates in response to rising inflation.
HML chief commercial and finance officer Neil Warman said, “Despite the challenging economic environment, the downward trend in repossessions we saw last year is set to continue for the first half of this year.
“However, repossessions will then begin to rise during the second half as a number of macroeconomic factors start to impact on homeowners and influence lender behaviour.
“Of particular concern this year will be the impact of rising inflation and interest rates on hard-pressed homeowners and the effect of continuing job losses. However, these are unlikely to feed through into increased repossessions during the early part of this year.”
Mr Warman added that even people in secure jobs would find paying their mortgages harder in 2012.
“Looking at 2012 we increased affordability pressures for borrowers who are in work together with the lagged effect of job losses in the public sector and benefit cuts,” he said.
“We forecast this will lead to a slight increase in repossessions during the year to a total of between 35,000 and 40,000.”
Gordon MacRae is head of communications and policy at housing charity Shelter Scotland and he said, “The fact that the only estimate being made of repossessions in Scotland is from an independent company exposes yet again how poor the quality of information is in Scotland.
“Whether the estimate is accurate or not, the main concern is that the mortgage possession crisis is set to continue for months and years ahead. Despite new protections introduced in Scotland last autumn, the UK Government has dramatically reduced the state safety net.
“For anyone who feels overwhelmed by their financial struggle it is crucial they face up to the facts and get advice sooner rather than later.”
For more information visit www.shelter.org.uk or call the free helpline on 0808 800 4444.
Photo used under Creative Commons licence courtesy of Flickr user Phil Hawksworth.