The Council of Mortgage Lenders has stated that it’s never been tougher to buy a home. Mortgage rates have soared due to:
• More buyers having to borrow between 3 to 5 times their incomes to afford a mortgage
• Interest rates have risen continuously and interest payments for first time buyers is now at 19.1% of their incomes
• Personal and consumer debts also impacts on affordability
All these factors combine to make debt all too easy to fall into, which in turn makes it harder to stop house repossession.
Harder to Stop House Repossession
For those who do manage to get a foot on the property ladder, their finances are so stretched that a small financial misfortune can be enough to rock the boat over. Affordability pressures are at an all time high and are thought to become even more pronounced due to the interest rate rises this year in May and July. It can be hard to stop house repossession when debt takes hold.
The rise in inflation rates means it is also harder for buyers to get fixed rate mortgages, making them more vulnerable to inflation. Despite the fact interest rates have shot up, the property market is continuing to boom. House prices have continued to rise and are now at around 11% higher then they were a year ago. Whilst this is good news for established homeowners who are financially secure, it puts first time buyers stretched to the max at a very precarious situation, vulnerable to debt and more likely to find it harder to stop house repossession.
The burden of household debts is at record levels according to leading accountancy firms. Repaying borrowed money and the interest on top is thought to account for 19% of the average UK household’s income.
If you’re looking for a fast cash sale or want to sell and rent back your home, Full House Developments Ltd is a specialist property company that really understands your needs. If you are worried about repossession, divorce, debt or mortgage arrears, Full House Developments consider all properties in every circumstance. For a quick, effective solution call our team of experts on 0800 234 6586. With total confidentiality, Full House Developments offer a guaranteed price for your home and handle all the paperwork for you. To find out more, email:info@fullhouseuk.com
