Average mortgage payments are the highest they have been since 1991 after the UK’s 1990 property crash which left hundreds of thousands homeless.
It has been reported that in the past six months, 8,000 properties have been repossessed and this number is expected to rise, with an estimated 50 families a day loosing their homes.
In the past, low interest rates have made big loans, like those to help with mortgage payments, easier to manage. However, with the threat of the Bank of England raising the interest rates within the next couple months looming in the air, homeowners have means to feel anxious. House prices are booming with an increase of 278%, sucking wallets dry to the bone.
A two person household, bringing in an average income currently pays 22% of their disposable income. First time buyers are also warned about the barricades they will run into since the upfront costs of buying a home has risen to an average £32,784 which could take as much 82% of their paycheck.
This raises the concern of the insolvency numbers for 2007, expected to top 150,000 citizens.
