A number of reports recently have suggested that there are many homeowners across the UK who are at risk of defaulting on their mortgage repayments. It is already difficult for many homeowners to keep on top of their mortgage repayments namely because of the soaring cost of living coupled with job losses and frozen pay. With the cost of everything from food and petrol to insurance and energy bills having rocketed many have found that they are struggling to keep up with other financial commitments.
There are fears that if the base interest rate increases those that are on the verge of struggling with their finances will be tipped over the financial edge, leaving them without any means to make payments on their mortgage and leading to possible repossession proceedings. Whilst interest rates are currently at an all time low of just 0.5 percent, where they have been for two years, there are concerns that the Monetary Policy Committee will have to increase the base rate soon in order to deal with soaring inflation.
With this in mind it is advisable for those that believe that they will struggle to get advice as soon as they can rather than waiting for something to happen that will tip them over the financial edge. It is always wise to be prepared in terms of finances, especially given that your house could be at risk if you fall behind on mortgage repayments. This means that households who believe that even if they are not struggling now they could be if the base rate increases should start looking at ways to improve their finances in advance.
There is advice available for those that are struggling with their finances or who believe that they could be struggling with the slightest change in payments such as mortgage, rent, bills, etc. Consumers are able to get free advice from debt charities about their finances and can get themselves prepared for any adverse changes to their financial circumstances by talking to an expert before the rates increase.
Tags: expert, UK, homeowners, Service, InflationA spokesperson from the Consumer Credit Counselling Service stated: “So many households are just managing to make ends meet, that even a small increase in the cost of their mortgage may push them over the edge. As far as possible, families need to think how they could pay such increases and seek help at the earliest opportunity if they feel that they cannot cope.”