(1888PressRelease)
May 25, 2007 - According to Peter Tutton, a policy adviser at Citizens Advice, a further rise in interest rates could be a "disaster" for many people who are already financially overstretched.
As a result, he has predicted an increase in the number of repossessions.
"Our evidence shows it only takes a very small change in people's circumstances to tip them from manageable credit commitments into serious debt," Mr Tutton said.
"We are seeing a rapidly growing number of people falling behind with mortgage payments and in some cases threatened with repossession. We know that some people are taking on mortgages that stretch them to the absolute limit.
"Any increase in mortgage interest rates could spell disaster for people whose finances are balanced on the very edge of affordability."
Homeowners who do end up struggling financially could consider selling their homes to National Homebuyers and then renting them back. Director Chris Newman says: "Like Citizens Advice, we are seeing a huge increase in the volume of people contacting us with nowhere else to go. Selling their property on the open market does not afford them the short timescale in which they need to sell.
"With repossession a real threat to thousands of people in the UK, our sell and rent back option is a simple way to release equity in property and remain living in your home."
The National Homebuyers sell and rent back solution is a less complicated process than equity release. They can be contacted
on 0870 979 8118 and more information can be found
at www.nationalhomebuyers.co.uk/sellandrentback.html.
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