Increase in house prices forces higher mortgages

It is no secret that the price of houses has risen over the past few years. This has led to many people not being able to get a low mortgage, leaving them having to borrow up to £150,000 to buy the home of their dreams.

It is certainly the highest priced mortgages in years and it is also leaving many people unable to keep up with their mortgage repayments. The reason the price has risen is due to continuing raised interest rates and with those unlikely to stop rising, it is only set to get a lot worse unless something is done about it.

The government have already stated that they are going to be introducing more shared equity homes by the year 2010, but that does not seem to help the thousands of families suffering now. Long gone are the days when you used to be able to buy your own home, these days you are lucky to even get a share in your home!

Due to the high interest rates, it is not only stopping people from buying new homes, it is causing havoc for those who already have their own homes. It is thought that there are over 900,000 families who are struggling to pay their mortgage within the UK and that is a shocking number to say that Britain is supposed to be one of the most economical countries worldwide.

So just what happens to these families who are struggling? Well unfortunately, repossession occurs and it is thought that between the months of January and June, repossession has risen by up to 5%. Many people might argue that it is partly the homeowners fault for not being responsible and taking on more than they can comfortably afford, but there is no doubt that some of the blame has to be placed on lenders. They need to start looking at not lending money to those in trouble.

After all, if homeowners do not borrow the money, how else are they going to be able to afford a house? Is it really such a sad situation that not many people are going to be able to own their own homes over the next couple of years? If things carry on like this then it certainly seems that way!