Is Your Mortgage at Risk?
Recently, the FSA launched a report suggesting upto a million homeowners could be at risk of repossession. They said the mortgages most at risk were mortgages which
- were more than 3.5 times income
- Mortgage over a longer period than 25 years
- Interest only mortgages.
- Mortgages more than 90% of LTV
On these criteria, I should start worrying as the first 3 apply to my own mortgage. My mortgage is currently 6 times income, 47 years and currently interest only. The only good thing is that my mortgages is 70% LTV.
To be honest, I’m not currently worried about my mortgage. The reason is.
I expect base rates to fall by at least 0.75% this year. True, it is possible banks may not pass the whole rate cuts on to consumers (I’m still waiting for the December cut) But, I expect at least part of the base rate cut will be past onto consumers.
Original post by Tejvan R Pettinger