- 04
- Oct
A report shows that at the end of June around 125,100 mortgages were running behind in their monthly repayments, and it is estimated that this number will increase as many Britons are set to come off fixed-rate cheap loan deals. Figures from the Council of Mortgage Lenders show that around 14,000 properties have been taken into possession in the first six months of this year, which is 18 percent higher than the six months leading up to it. The number of repossessions is set to increase as many homeowners will be hit hard with the interest rate increases once they come off their current rate over the next few months, with some jumping as high as 2%.
The increase in home repossessions is believed to be caused by a number of factors, interest rate is one cause as the interest rates have become higher than many were expecting placing many homeowners at risk of being unable to afford their monthly repayments. Another factor is the risks of bad credit loan lending that many are falling into and finding that they are unable to keep up with the monthly payments.
Although the number of repossessions are high, the vast majority of mortgage borrowers are coping with the interest rate rises and are stretching the budgets to meet the monthly payments on their mortgages. If you find that you are struggling with your monthly home loan payments, then you should consider talking to your lender to see what options are available to you to keep your home from being repossessed.
