Homeowners are being pushed into record levels of debt. In some areas of the UK borrowers are spend up to one third of their joint salaries to pay their mortgage repayments. This is resulting in a rising number of people being taken to court as they can’t keep up with their repayments.
The amount owed in home loans has hit an all time high at £1.1 trillion. Judgements are also rising and are at their highest rate since the early 1990s. Experts are describing the problem as ‘extremely worrying’ and warned homeowners to reduce their spending.
The problem has been highlighted after two studies were conducted by the Registry Trust and the Woolwich. The reports showed that householders in the South spend more of their salary on repaying their mortgages than people who live in the North.
It also depends if the area you live in is an up and coming area, such as in London and the South East where borrowers pay high proportions of their salaries towards their mortgages. For buyers living in the West Midlands and Wales they paid a smaller proportion of their wages towards their mortgage repayments.
Home loan debts spiralling out of control
Home loan debts spiralling out of control
Thu, 29 Sep 2005
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