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26% of homeowners 'worried about repossession'

By Daniel Culpan

23 October2021

New research from Which? has found that 50% of people in the UK are worried about rising mortgage rates, and more than a quarter (26%) of people with mortgages are worried about having their home repossessed.

The findings, revealed in the Which? Quarterly Consumer Report, suggest that a growing gap is emerging between homeowners who are older and more financially stable, and those who are under more financial pressure - such as new homeowners aged 30-49 and younger people struggling to buy their first property.

According to the research, many people in the 30-49 age range are 'trapped' in their current mortgage deal and can't switch to another, because of things like mortgage arrears, low wage growth and squeezed household budgets.

Furthermore, this age group also has the highest home-related costs, typically spending 186 per week, compared with the national average of 135. Rising rents are also making it more difficult for first-time buyers to save up for an adequate deposit - with 54% of people under 30 worried about getting a foot on the property ladder.

A spokesperson for All About Money commented: "Rising living costs, flat wages and increasing rents are all making it more difficult for first-time buyers to purchase their first home. But it seems homeowners are struggling too, with rising interest rates potentially pushing many into mortgage debt and other financial problems.

"Anyone struggling to afford their mortgage payments should speak to their lender, or get some professional advice to work out the best answer to the problem."

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