The proposed mortgage schemes from the government will gradually take effect for the worst affected homeowners, one sector commentator has claimed.
As part of last year's Pre-Budget report, the government announced a package that included shortening the waiting time for Support Mortgage Interest from 39 weeks to 13 weeks and increasing the capital limit to £200,000.
Chris Jenkins, co-owner of the Homeowners Advice Centre, said that homeowners who still feared the worst after the adoption of the scheme may wish to consider adopting a more long-term financial plan.
"I expect the number of repossessions to rise this year as many homeowners who were given a stay of execution from repossession in the form of a payment plan towards the end of 2008 could well default as a result of unemployment," he said.
However, Mr Jenkins added that he was optimistic for 2009.
The Council of Mortgage Lenders reported in October 2008 that it expected around 45,000 properties to be repossessed over the next 12 months.
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