Avoid Home Repossession

FIVE interest rate rises in the past year have put considerable pressure on homeowners struggling to meet their monthly mortgage repayments.

Independent research has suggested that up to a third of UK homeowners now have difficulties with their finances.

The day to day pressures of money worries have increased so much that more than 10,000 people so far this year, have approached housing charity Shelter asking for help and advice on repossession.
A Moneymatchmaker spokesman said: "People are already overstretched by just climbing onto the housing ladder and with interest rate rises adding to their pressures, many are being pushed over their financial limits, leaving them facing mortgage arrears, repossession and even homelessness."
July 2007 saw another interest rate increase to 5.75 per cent, which means the monthly cost of a typical £125,000 mortgage is around £130 more than it was a year ago, when rates were steady at 4.5 per cent.

The additional pressures of finding the extra money needed every month is causing money problems and will mean that those people who are only just able to afford their current bills to slip into serious debt problems. Most find that once they are behind, it can be very hard to get their finances back on track. So what is the answer to moneyworries? It is extremely important that the problem is not ignored, take action now and you could avoid financial disaster. The Moneymatchmaker spokesman said “we offer many finance solutions to overcome money problems, such as debt consolidation remortgages or converting a client’s mortgage repayment type to provide a short term period to get out of debt. This can be by taking out an interest only mortgage on a short term basis to reduce monthly outgoings, but he urged people to remember that they will need to make arrangements to repay the debt at the end of the mortgage term”. Talk to a mortgage consultant to discuss the various options to avoid the risk of repossession.

If you are on a standard variable rate you should consider switching to a better deal, such as a fixed rate mortgage or discount rate mortgage. Moneymatchmaker.com’s advisors could look at your finances as a whole and work out a package that will reduce monthly outgoings and costs.

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