You are here: Home - Mortgages - Buy To Let - News -

One in four worry about having their home repossessed

0
Written by:
23/10/2012
Research carried out by Which? claims that half the population are worried about mortgage rates and a quarter (26%) of people with mortgages fear having their home repossessed.

The consumer group has revealed an increasing gap between homeowners aged 30-49 who bought their homes recently and younger people who can’t get on the property ladder.

The report highlights that many people in the 30-49 age group are ‘mortgage prisoners’ trapped in their current mortgage deal, unable to switch when rates increase.

This group has the greatest housing related costs, spending on average £186 a week, compared with the national average of £135.

Which? executive director Richard Lloyd said: “The housing market is failing not just one but two generations of consumers, with many mortgage prisoners trapped on their current deal and young people excluded from the housing market altogether.”

The Quarterly Consumer Report also revealed that homeownership is increasingly out of reach for first-time buyers with rising rents making it harder for people to save for the large deposits needed.

More than half of people under 30 who don’t own a home are worried about getting on the property ladder.

Lloyd added: “The Chancellor must put tougher obligations on banks that get cheap finance through the Government’s Funding for Lending Scheme so that more is done to help those who are struggling through no fault of their own, and especially to ensure that mortgage prisoners and first-time buyers can benefit from lower borrowing costs.”

Lenders have also increased mortgage arrangement fees, which have risen by around 60% in the past eighteen months to an average of £1,472 in August 2012.

Which? says that despite the Government’s efforts to ease problems in the housing market through the Funding for Lending scheme, where banks and building societies are being given access to cheap funds in order to lend lower cost loans,  more than 1.6m people with mortgages have been hit by increasing Standard Variable Rates on their mortgages.

It calculates that borrowers are now paying about £400m a year extra as a result, despite the Bank of England Base Rate remaining unchanged for more than three years.

 

 

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2219037-credit-card1
Credit card market hots up in the run up to Christmas

Natwest and RBS have launched a new balance transfer card that offers consumers 23 months interest-free, which is set to...

Close