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Aug 24, 2006
Property purchasing company A Quick Sale
has announced the results of a survey which reveals the impact of the sudden
rise in interest rate by the Bank of England on UK homeowners.
Survey results show that Britons are now
facing added pressure on their already overstretched finances, with one in ten
people in the UK
suffering arrears with their mortgage payments and the possibility of facing
repossession in the future. A Quick Sale says the quarter-point rise in base
rate, to 4.75 percent, will cost UK homeowners £226,896,000 million
in the coming months.
To make matters worse, the research found
that those struggling to make their mortgage payments are too embarrassed to
admit that they are having problems to family and friends. Over a third (35%)
of Britons are struggling to manage their day-to-day finances while nearly half
(42%) won’t discuss their finances with family and friends, with 22% actually
lying to cover up their situation. In addition, 17% have taken out secured
loans in a bid to improve their financial situation, while one in five (20%)
would never tell people if they had to sell their house due to their finances.
“Being in mortgage arrears is a more
common problem than people think. According to the Council of Mortgage Lenders,
in the first half of this year repossession figures were at their highest since
2001 standing at 8,140. This quarter-point rise will create real problems for
those who are already finding it difficult to make their mortgage payments and
we will more than likely see repossession orders increase as a result,” says A
Quick Sale Managing Director Richard Watters.
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