The
Bank of England has warned that
mortgage borrowers taking out huge home
loans could cripple the
mortgages market.
According to statistics published today by the Bank of England, the number of homeowners who are struggling to meet
mortgage repayments has climbed to 7.7 per cent. This is equivalent to around 900,000 households. Further statistics indicate that around 1 in 10 have borrowed over £150,000, whilst many have taken
out mortgages in excess of £300,000.
Repossession figures also soared, with a 76 per cent increase in the number of homes repossessed between January and June. According to the Bank of England the typical person has struggling to pay off their mortgages earns £30,000, but they face
debts of almost three times this, including
personal loans and
credit cards.
The director of Chase De Vere Mortgage Management, Nick Gardner, said: "It is quite possible that if people borrow the maximum they can get away with, they will be over-stretching themselves. It may then only take one or two rate rises to put such a squeeze on their
finances that they can no longer make ends meet."
