Rate rise will hurt homeowners
May 11, 2007 by admin
Filed under News, News-Mortgages
The fallout from yesterday’s (May 10th) interest rate rise is being felt today, with many organisations warning that the increase could leave homeowners in the red.
The Bank of England announced that the base rate would rise by 0.25 per cent, taking it to 5.5 per cent – the highest it has been since April 2001.
Experts are warning that those with a mortgage are likely to suffer the most, especially as more and more people are taking out loans that stretch them to the absolute limit.
As house prices continue to grow and buyers take out mortgages which leave them financially stretched, Citizens Advice is warning that this latest interest rate rise may tip some homeowners over the edge.
“Today’s interest rate rise will put added pressure on some homeowners. Our evidence shows it only takes a very small change in people’s circumstances to tip them from manageable credit commitments into serious debt,” said Peter Tutton from the organisation.
“Citizens Advice is seeing a rapidly growing number of people falling behind with mortgage payments and in some case threatened with repossession.
“Housing debt is one of our fastest growing problems and it increased by 20 per cent in the last year,” he added.
Borrowers are being advised to talk to their lender if they are struggling to make payments, while those considering taking out a mortgage should check thoroughly that they can afford it.
Bailiffs may be given greater powers
March 6, 2007 by admin
Filed under News, News-Credit-Cards
Bailiffs may be given the power to break into your home for as little as an unpaid credit card bill.
At present only certain bailiffs are allowed to do this but the tribunals, courts and enforcement bill is set to get its second reading in the house of commons today (March 5th).
If it becomes law, all bailiffs will be able to enter your home to collect a debt but fears are growing that this may lead to an increase in cases of bailiffs abusing their powers.
Citizens Advice is pushing for an independent regulator to be included in the bill, ensuring that bailiffs are acting within the rules.
The organisation also wants to see safeguards brought in that will guarantee bailiffs are only forcibly entering a property as a last resort.
“This Bill should have been the perfect opportunity to modernise the law and end abuse once and for all,” said chief executive at Citizens Advice David Harker.
“Instead it gives bailiffs greater powers without any proper regulation – a recipe for abuse on an unprecedented scale.
“It is a scandal and a disgrace that six years after the government made a commitment to bring in independent regulation, the misery and abuse continues. It has to stop,” he added.
Research by Citizens Advice shows that 64 per cent of bailiffs were guilty of harassment and intimidation in England and Wales since October 2006.
It also found that 40 per cent had misrepresented their powers, while 42 per cent charged debtors excessive fees.
