Homeowners ‘struggling as rate rises bite’

Figures from mform.co.uk show that more than two million British mortgage borrowers are facing debt management difficulties as a result of the series of interest rate increases.

And the online mortgage firm is convinced that young borrowers – those aged between 18 and 34 – are most likely to feel the effects of the base rate rises as they try to get a foot on the first rung of the UK’s housing ladder.

Eamonn Rice, mform.co.uk’s chief executive, said: “Many first-time buyers either use all or most of their savings for a deposit or take out 100 per cent mortgages and have loans that are a huge multiple of their income.

“In a period of rising rates, it is now especially important to shop around for a competitive mortgage.”

Earlier this year, a report from the Consumer Credit Counselling Service forecast that millions of British homeowners would be “on the rack” financially throughout 2007.