Families ‘face homelessness’ after interest rate rise

Finances for thousands of families in the UK are being increasingly stretched as house prices continue to rise and for many the debt management difficulties presented by a further rise in the cost of borrowing will lead to their home being repossessed, the charity claims.

Chief executive at Shelter Adam Sampson said: “Thousands of families are already overstretching their finances to keep a roof over their heads, but this rate rise could be the final nail in the coffin for many borrowers hoping to keep their homes.”

The not-for-profit organisation lays much of the blame for the debt management disaster facing many British homeowners on the government, which it claims has failed to supply enough affordable housing to prevent rises in homelessness.

Data released by the Council of Mortgage Lenders earlier this week demonstrated that the cost of getting on the first rung of the UK’s property ladder is becoming increasingly unaffordable.

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