Rising interest rates put pressure on mortgage repayments
Published On 6 May 2007
More people are struggling to make their mortgage repayments as interest rates put increased pressure on households, a new report suggests.According to the Department for Constitutional Affairs, 33,715 mortgage possession claims were issued in the first quarter of the year - one per cent more than in the same period in 2006.
Similarly, one per cent more mortgage possession orders were made in the first three months of the year - 21,931 in total.
Mortgage possession orders allow the claimant to apply for a warrant of eviction for the people living in a property and are sought when mortgages fall into arrears.
Commenting on the figures, David Stubbs, the senior economist for the Royal Institution of Chartered Surveyors, said: "The interest rate rises since August have clearly started to put some mortgage owners under financial pressure and with further hikes on the way household finances will feel the pinch, resulting in 52 repossessions per day.
"However, many mortgage owners who get into trouble with their payments are often able to avoid repossession by selling their home. The latter is only possible due to the present high level of housing demand created by a strong economy."
Figures from the Council of Mortgage Lenders indicate that the average new mortgage in the UK is worth £123,300.
