The cost of the home mortgage crisis may be more than expected, as homeowners struggle to keep up on their payments, often going into more debt in the process. The overall amount of home mortgage defaults is on the rise and the problem may get worse as the year goes on. No relief for the home mortgage market is expected for several months, and experts warn that it could actually take years to see any big difference in rates. This is unwelcome news to those that need to get a new home mortgage or for those that are struggling to avoid foreclosure. At this time however, little can be done to change this issue until the housing market rebounds.
Stephen Gifford, Grant Thornton’s chief economist, said: “Despite the global downturn flattening the growth of personal debt and UK GDP over the past few quarters, debt levels continue to grow at a faster rate than the income the UK generates.
“Although there is no cause for panic as personal debt is well covered by the UK housing stock, the figures clearly illustrate the continuing problem of growing personal debt levels in the UK.”
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