Same old story, another Bank of England Thursday meeting, another rise in interest rates and more misery for home owners. Well, it may not be every meeting of late which has seen interest rates rise, but it is certainly becoming a habit. If the expectations regarding this weeks economic news is anything to go by we may soon be seeing base rates of 6% and above!
But are people really struggling?
The truth is that up to 8 million home owners are currently struggling to make their monthly mortgage payments, even though many may be sitting on tidy paper profits on their properties. There seems to have been a general rise in calls to the various financial advice help lines, with many operators predicting the situation will get much worse before it gets better.
Surely we should be seeing more repossession fire sales if things were that bad?
The truth is that repossessions and repossession fire sales always lag the general trend in the mortgage market, often because of the time lenders are obliged to give to home owners to resolve their problems. Once a period of reflection has passed and the clientâ€™s situation is still unresolved, this is the time when repossession is most likely to happen.
Pressure is building up for home owners, even after the last few boom years, and many are just starting to feel the pinch.