Homeowners at risk as debt mountain continues to grow
A lot of homeowners will struggle badly with debt this year, according to a leading debt charity.
The Consumer Credit Counselling Service (CCCS) has warned that a higher rate of inflation and increasing interest rates will leave homeowners with less money to make a saving and investment and could lead to hardship in many cases.
The CCCS said it was seeing a lot more people with severe debt problems this year than last and that the squeeze was on many households.
One family struggling with its mortgage repayments told Your Money: “We are really under the cosh now and this is within the two-month period when council tax and water rates are not being taken from our bank account as they are debited on a 10-month cycle from April to January.
“When these kick in again next month we will really be on the edge, especially with the mortgage. We dread to think what will happen then – and there could well be another interest rate rise according to the experts.”
The CCCS said that the high fees being levied by mortgage lenders on those who chose to make a UK investment in property, made it more difficult for borrowers to fix their mortgage rate and thus budget more effectively.
“As the burdens on household finances mount, our research shows that homeowners in particular should take care,” said CCCS chairman Malcolm Hurlston.