Double dip recession fear for those in debt

Financial analysts are warning that house price figures are beginning to show signs that the country may be heading for a double dip recession.

According to an report by research practice Acadametrics, house prices have fallen this month for the third time in a row, sparking fears that the economy may be about to re-enter recession.

The price falls will be of serious concern to homeowners that bought near the top of the market a couple of years ago and now face problems remortgaging with negative equity.

If lenders are not willing to offer the full loan-to-value ratios, many homeowners may find themselves having to find extra cash that they simply can't afford.

Kevin Still, director of Atlantic Financial Management, says: "There are continuous mixed messages from the market, which must shake consumer confidence, especially if you already have debt problems.

"Many homeowners are unable to clear debts through releasing equity in their properties and need to look at alternative non-borrowing debt solutions, like Debt Management Plans (DMPs) and IVAs."

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