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This article is for information only. It does not constitute advice. Chase Saunders Ltd does not provide services for savings, investments, mortgages or insurance. You should seek advice on these areas from a qualified financial advisor.
Household paying 20% of salaries on debt
Article Category: Debt Consolidation Help and AdviceThe spectre of a housing crash appears to be moving ominously closer with the news that households are paying more than 20 per cent of their gross salaries on
mortgages and other debts.
Research by the Bank of England (BOE) published in its latest quarterly bulletin shows this is the biggest slice of income since 1991 - the last major house price collapse.
The figures also reveal that the proportion of households struggling to
maintain payments is at the highest level for almost 15 years.
Problems in the commercial sector also appear to be escalating, according to the report, as investors bail out.
For the first time in many years investment returns are negative and the bank is worried this may have a domino effect.
The report states: "Commercial property prices fell sharply in the United Kingdom and returns on commercial property slowed significantly…commercial property funds became forced sellers of their assets, this could potentially further undermine returns."
On a more positive note the BOE says that it was "reassuring" that the number of people who reported having problems paying their
mortgages was still lower than 1991.
For mor information about debt consolidation call our advisors on 08000 122 118 for FREE, no obligation help and advice Created on 17/12/2007 16:30:34
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