(1888PressRelease)
May 13, 2007 - Both housing charity Shelter and the Citizens Advice Bureau have warned that the impact on homeowners' finances of the rate rise is likely to result in a surge in the number of repossessions.
Government statistics show that repossessions are already on the up, while Adam Sampson, Shelter's chief executive, believes that rates of 5.5 per cent could be "the final nail in the coffin for many borrowers hoping to keep their homes".
"Thousands of families are already overstretching their finances to keep a roof over their heads," he told the Telegraph.
"The fact people are pushing their borrowing to the limit to get into an increasingly unaffordable housing market is a result of the failure to build enough homes to meet demand."
Chris Newman from National Homebuyers says: "Around half of all homeowners have a variable rate mortgage, which makes them more susceptible to interest rate rises.
"We concur with the charities' comments and further predict a huge increase in repossessions over the coming few months. With mortgages being lent up to eight times annual income, this is surely a recipe for disaster."
National Homebuyers is currently assisting with people's repossession issues by stepping in and purchasing their property for cash, while allowing the debtor to remain living in their home as a tenant. More information about sell and rent back can be found here:
www.nationalhomebuy ers.co.uk/sellandrentback.html.
For further information on a quick house sale or to release equity in your home
please contact National Homebuyers
on 0870 979 8118
or visit www.nationalhomebuyers.co.uk.
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