Debt hangover concern for homeowners

Debt hangover concern for homeowners

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Video transcript

Millions of homeowners could struggle to pay off their mortgages if the base rate increases to three per cent by 2018, according to a new report.

The Resolution Foundation has found that despite the Bank of England pegging the rate at the historically low level of 0.5 per cent for over five years, many householders still haven`t made significant inroads with paying back the cost of their property, with oneinfive reporting difficulties.

This number is well up on the one in ten who struggled in 2005 and only just shy of the one in four who found paying off their mortgage difficult in the recession at the start of the 90s. However, the think tank`s Hangover Cure reports that things are poised to get much worse.

It suggests that the amount of people whose repayments take up more than a third of their after tax salary could more than double to 2.3 million by 2018, if the base rate goes up to three per cent. Even more worryingly, those who spend more than half of their income could increase from 600,000 to 1.1 million.

The Resolution Foundation wants more lenders to offer advice to prepare borrowers for the possible increases, but you could take matters into your own hands by looking for a mortgage which won`t leave your finances in such a precarious position in a few years.

At First Choice Finance, we`ll scour the our products to find the most suitable deal for you and offer it to you on a no obligation basis. If you`re happy, we can start process it straight away but if not, you`re totally free to just walk away.

Find out more at firstchoicefinance.co.uk or call and speak to an adviser on 0800 298 3000 or 0333 003 1505 if on a mobile.

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Homeowner Secured Loans
9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages
8.4% APRC.
Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)


Unsecured Personal Loans
REPRESENTATIVE 49.9% APR (VARIABLE)
First Choice are tied to certain unsecured lenders.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Security is required on immovable property.



Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.

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