26% of UK mortgages holders fear home repossession
Some 26 per cent of people in the UK with mortgages are worried about their home being repossessed.
This is according to research carried out by Wh…
Some 26 per cent of people in the UK with mortgages are worried about their home being repossessed.
This is according to research carried out by Which?, which also found that half the population are concerned about mortgage rates at the moment. The Bank of England base rate has remained at the historic low of 0.5 per cent for over three years, but 1.6 million people have seen their Standard Variable Rates increase since August last year.
As a result of this, these people are having to fork out an additional £400 million a year in interest payments. Considering the tight financial budgets that many consumers are having to operate in currently, this situation is far from ideal.
If people continue to struggle to make ends meet, then they may need a debt solution in order to hand them back control of their circumstances.
The consumer body wants to see clearer information from banks and building societies about the mortgage lending that has taken place under the Funding for Lending Scheme. It also thinks clearer rules should be put in place to ensure cheap finance is passed on to mortgage customers.
In the past 18 months, there has also been a 60 per cent rise in the cost of mortgage arrangement fees, which makes it increasingly expensive for anyone looking to switch their mortgage in search of a better deal.
The publication of Funding for Lending Scheme data showed that in the three months to the end of September, only £500 million was released by the 35 banks and lenders signed up for the scheme.
In response to this, Which? executive director Richard Lloyd noted the biggest problem is that it "remains unclear whether this cheap finance is being passed on to the people who need it the most".
"There must be more transparency about how this subsidy is being used and clearer rules to ensure more borrowers can benefit, not just those with significant equity in their homes. This scheme should aim to help those who are struggling through no fault of their own," he added.
By James Francis
