Homeowners, many of whom are already struggling to try and keep up with mortgage repayments despite the recent interest rate cuts, are facing a real struggle when it comes to coping with their finances according to a recent report, with many expecting to face difficulties in coping financially due to strained household finances. The report suggests that millions of homeowners could find it increasingly difficult to cope financially due to a number of factors.

Whilst interest rates have been cut twice in the last few months, homeowners are still battling to keep up with repayments as a result of the five rate hikes between August 2006 and July 2007. In addition to this many have been hit hard by other rises in costs, such as increased food prices, rising petrol costs, and increases in bills such as water and energy. The survey showed that around 84% of people in Britain are concerned about their finances.

In addition to this, 30% of consumers said that they did not know whether they would be able to cope for much longer, and it was revealed that many were concerned over the outcome of the recent budget.

One industry official said: ‘I am really surprised by the extent of worry out there. Close to a third of Brits have obviously been really spooked by the Budget. There is little doubt many Brits will find their annual road tax as high as the value of their car as from next year, creating a massive headache for people who are really struggling. These are some of the unintended but very real victims of the Budget. People from all walks of life and income levels are feeling the pinch from rising bills and taxes.’

Recent additions:

• Interest rates on personal loans continue to rise
• Loans market still suffering due to credit crunch
• Avoiding risks with an unsecured personal loan
• Keeping up with your secured loan repayments

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