Tuesday, 20 September 2011
Monday, 16 July 2007
Home Owners Risk Repossession of their Homes
Homeowners have risked repossession of their homes by taking out loans secured against their property
Rising interest rates and large credit card Debts are driving increasing numbers of consumers to take out home loans that put their homes at risk.
Five interest rates rises over the past year, will leave many people unable to meet monthly repayments on credit cards, personal loans and car finance deals and there mortgage payments, economists predict.
the debt crisis is driving people into the hands of highly controversial debt consolidation companies and dubious money lenders.
The market is seeing a surge in second-charge mortgages which, could lead to rising repossessions for many years to come.
These products, the most common type of "second charge mortgage", are heavily advertised on day-time TV and are being heavily sold to the “sub – prime market “
Debt consolidation companies offer to pay off a consumer's credit card bills and other types of unsecured According to the Bank of England, consumers have racked up more than £1.3 trillion of unsecured lending.
The Bank of England voted to raise base rates to 5.75 per cent last week - the fifth increase since July last year.
We expect rates will rise to 6 per cent. Even though it takes between six months and two years for the full effect of a rise to be felt, repossessions have already increased sharply. Three times as many properties have been repossessed in the second half of last year than in the first half of 2005
According to the Consumer Credit Counselling Service charity, debt consolidation loans only benefit a minority. In an analysis of thousands of people who had taken out these loans, it said 97 per cent would have been better off by taking alternative action.
Steve Jenkins 29, lives with hiswife and two children in Nottingham. The couple took out a £19,000 loan plus an extra £5,000 loan insurance policy in july 2005 to pay back over 10 years.
If they are unable to keep up these repayments they may have their house repossessed.
Tip: Always better to remortgage than take out a loan from one of the companies that advertise on daytime t.v.
Rising interest rates and large credit card Debts are driving increasing numbers of consumers to take out home loans that put their homes at risk.
Five interest rates rises over the past year, will leave many people unable to meet monthly repayments on credit cards, personal loans and car finance deals and there mortgage payments, economists predict.
the debt crisis is driving people into the hands of highly controversial debt consolidation companies and dubious money lenders.
The market is seeing a surge in second-charge mortgages which, could lead to rising repossessions for many years to come.
These products, the most common type of "second charge mortgage", are heavily advertised on day-time TV and are being heavily sold to the “sub – prime market “
Debt consolidation companies offer to pay off a consumer's credit card bills and other types of unsecured According to the Bank of England, consumers have racked up more than £1.3 trillion of unsecured lending.
The Bank of England voted to raise base rates to 5.75 per cent last week - the fifth increase since July last year.
We expect rates will rise to 6 per cent. Even though it takes between six months and two years for the full effect of a rise to be felt, repossessions have already increased sharply. Three times as many properties have been repossessed in the second half of last year than in the first half of 2005
According to the Consumer Credit Counselling Service charity, debt consolidation loans only benefit a minority. In an analysis of thousands of people who had taken out these loans, it said 97 per cent would have been better off by taking alternative action.
Steve Jenkins 29, lives with hiswife and two children in Nottingham. The couple took out a £19,000 loan plus an extra £5,000 loan insurance policy in july 2005 to pay back over 10 years.
If they are unable to keep up these repayments they may have their house repossessed.
Tip: Always better to remortgage than take out a loan from one of the companies that advertise on daytime t.v.
House Repossessions Will Continue to Rise in 2007
House repossessions are on the increase in the u.k.
House repossessions will increase in 2007 as interest rates continue to rise, one industry body has warned.The Royal Institution of Chartered Surveyors (Rics) has said mortgage repayments are a much larger burden to homeowners than they have been at any time since 1991.
Affordability conditions will also continue to worsen with the monetary policy committee expected to continue to raise interest ratesTwo people living in a household on average incomes can now expect at least 22 per cent of their salary to be spent on home loan repayments. The last decade has seen massive property price increases with the cost of purchasing a house jumping by over 278 %The first half of 2006 saw around 8,000 properties repossessed by lenders, which is the highest figure for five years and may be a sign of things to come.
Unless the government builds more affordable housing and raises the stamp duty threshold, many young people will continue to struggle to access the housing market.
In addition many fixed rate mortgages have come to an end now and a lot of people with debt will not be able to afford higher interest payments on their mortgage interest payments which will fuel the repossession of properties in the u.k.
http://www.ibuyhomes.co.uk
House repossessions will increase in 2007 as interest rates continue to rise, one industry body has warned.The Royal Institution of Chartered Surveyors (Rics) has said mortgage repayments are a much larger burden to homeowners than they have been at any time since 1991.
Affordability conditions will also continue to worsen with the monetary policy committee expected to continue to raise interest ratesTwo people living in a household on average incomes can now expect at least 22 per cent of their salary to be spent on home loan repayments. The last decade has seen massive property price increases with the cost of purchasing a house jumping by over 278 %The first half of 2006 saw around 8,000 properties repossessed by lenders, which is the highest figure for five years and may be a sign of things to come.
Unless the government builds more affordable housing and raises the stamp duty threshold, many young people will continue to struggle to access the housing market.
In addition many fixed rate mortgages have come to an end now and a lot of people with debt will not be able to afford higher interest payments on their mortgage interest payments which will fuel the repossession of properties in the u.k.
http://www.ibuyhomes.co.uk
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