Surge In Home Owner Loan Problems
Although the UK is now officially out of recession and the economy is starting to show some signs of recovery, many homeowners are still finding it difficult to stay on top of the repayments on their home owner loan or mortgage, according to a new survey.
The survey, conducted by YouGov and the housing charity Shelter, has revealed that the number of individuals struggling with their home owner loan has risen by around 78 per cent over the course of the last twelve months.
The survey found that somewhere in the region of three million home owners with a secured loan on their property were struggling to maintain their loan repayments. This equates to around one in six people with a home owner loan.
It is estimated that 18 per cent of home owners are constantly struggling with their mortgage loan repayments, compared with just 10 per cent at the same time last year and this is leading to an increase in loan arrears and the increased possibility of repossession for many borrowers.
The number of borrowers who already have more than twelve months loan arrears on their home owner loan or mortgage has trebled over the course of the past two years and if the Bank of England were to increase interest rates on loans at any time in the near future, this could have disastrous consequences for many who are only just managing their loan repayments at the moment.
Campbell Robb of Shelter said “With so many home owners in serious difficulty, the pressure could become too much and unless we take urgent action we may well be faced with a sudden surge of people at risk of losing their home in the coming months.”
