Home loan borrowers using unsecured credit to stay afloat
According to a recent study complied by a new property market show on the BBC, almost 3% of home loan borrowers within the UK are using credit cards and other forms of unsecured borrowing to meet their monthly repayment commitments.
Official numbers have not yet been released, but it is believed that at least 1 million homeowners across the country could fall into the above class. It is further suggested that homeowners aged between 19-25 are the most prevalent conformists to the trend, with approximately 8% of the demographic actively acquiring unsecured credit to pay their mortgage arrears.
Commenting on the findings one expert suggested that constantly hardening conditions with regards to interest rates and the way In which certain mortgage plans are affected, have caused many home loan borrowers to go to extreme lengths in order to keep afloat. There are also a high number of homeowners who are choosing to remortgage on a frequent basis and to also secure additional credit against their homes as means to make ends meet.
The biggest fear for many is in the knowing that such “solutions” to their predicaments can obviously not continue for the long term and the reality for many is that buoyant economic conditions may force them to give up ownership of their homes completely.
