(1888PressRelease)
May 10, 2007 - According to Woolwich Mortgage Affordability Research, the average mortgage repayment in England and Wales was £590 a month in April - up from £512 in April 2006.
What's more, household net earnings have risen at a third of the rate - five per cent - of average mortgage payments, heightening homeowners' financial concerns.
Andy Gray, head of Woolwich Mortgages, believes that the combination of the two has left homeowners under severe pressure - even without the interest rate rise forecasted for later this week.
"Mortgage borrowers are really getting squeezed," he confirmed.
"With the costs of council tax, petrol, food and drink, as well as mortgages, all increasing consumers are seeing a large amount of their earnings being diverted to essentials, putting real pressure on disposable income.
"Most commentators are suggesting that interest rates will increase further this week.
"However, our research shows that that the three interest rate increases over the last 12 months are already starting to have a major impact on borrowers."
We contacted the UK's number one homebuyer - National Homebuyers and spoke to director Julian King who advised: " We believe with a further rate rise on the cards this week we are potentially about to see a very serious situation emerging as more and more people start to slide down that slippery slope ultimatley leading to repossession.
"We are being inundated with people wanting to sell their homes and then remain living there as a tenant which we are happy to do and in most cases we can structure a package to suit, allowing our clients to clear debts and mortgage arrears and move on with their lives".
If you would like to contact National Homebuyers to find out how they can help you then either
call them on 0870 979 0900
or www.nationalhomebuyers.co.uk.
