Interest rate rise will bring added pressures
Sinn Féin Housing Spokesperson, West Belfast MLA Fra McCann has expressed concerns that the expected rise in interest rates will hit home owners hard.
Mr McCann said:
"The expected rise in interest rates will once again place an added burden on homeowners. It will put an extra £20 to £30 a month on the average mortgage. Clearly that is something homeowners cannot afford, many are finding it increasingly difficult to keep up with the current level of repayments.
"My worry is that if there is a continuing trend of interest rate rises many people will be forced to take out other loans just to get by. Due to the cost of day to day living here there is isn't the rates of pay or benefits to match those rises. We live in the stranglehold of a low wage economy due to the failed policies of successive British Ministers. The value of people's homes has risen dramatically over the years but their disposable income has deteriorated.
"Experts have warned people to think carefully before they take on additional forms of borrowing. They have been highlighting the dangers of taking out secured loans which mean your home could be repossessed if you don't keep up the repayments on the loan, even if it's only for a few thousand pounds. There is also a worry against consolidation - rolling up all your debts into one big loan. This is deeply worrying and concerning for low-income households, as well as for those on benefits or in receipt of pensions.
"Homeowners may end up paying a very high rate of interest - or worse still, they might discover they've swapped an unsecured loan for one which is secured on your home and that if they don't keep up the payments in the end sadly could lose their home." ENDS