Homeowners ‘reaching the limit’ over mortgages

Nick Lord, head of money advice at the charity, has said he is worried by the number of households unable to make mortgage payments.

According to the Department for Constitutional Affairs, there was a 22 per cent rise in repossession orders between June and October of last year, compared with 2005.

Speaking on BBC Radio 4’s You & Yours programme, Mr Lord said that homeowners are struggling with their mortgages because of factors that include recent interest rate hikes and rising fuel costs.

“I think for many people we are now seeing the limit, the tipping point,” he stated.

Ray Boulger from mortgage broker John Charcol has said it is unlikely that the Bank of England (BoE) will raise interest rates above 5.25 per cent this year.

“Based on the interest rate futures market, the consensus is that the BoE rate will see one further increase to 5.25 per cent and end the year there,” he stated.