Consumers around the country could be risking debt management problems in their desperation to get a foot on the housing ladder, a new report has suggested.
Bradford & Bingley has warned would-be first-time buyers to be careful not to overstretch financially and worsen their debt management concerns as they focus their efforts on securing a mortgage deal.
And the warning comes after research from the financial services firm found that around 17 per cent of people looking to buy a property are currently have £15,000 or more in personal debts.
“First-time buyers have to be careful not to overstretch themselves,” said Andy Wiggans, director of mortgages for Bradford & Bingley.
“With possible interest rate rises on the horizon, people have to be realistic about what they can comfortably afford and not be tempted into borrowing more than is sensible,” he added.
According to figures from the Council of Mortgage Lenders, the number of people whose homes were repossessed in the UK was 18 per cent higher during the first half of this year compared to the last six months of 2006.