Welcome Friday 30th July 2010 22:48

News in Detail

Homeowners at risk due to economic slow down

Monday 4th February 2008 - 09:00

The Financial Services Authority (FSA) recently warned that millions of homeowners risk losing their homes in coming economic slowdown. High energy prices, sluggish growth and excessive borrowing are likely to leave many first time buyers in severe financial trouble with repossession a very real possibility. 

They highlighted three danger zones for mortgages taken out in the past few years: 

  • Mortgages taken out for longer than 25 years
  • If it was worth more than 90% of the value of the house
  • If amount borrowed is 3.5 times greater than household income.
Anyone whose loan has two or more of these danger zones should seriously consider taking stock of their finances and check the marketplace to make sure they are on the best possible deal.

« Back to archive