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First-time buyers 'struggling with mortgage payments'

21/03/2008

The number of homeowners heading towards repossession is increasing, particularly among first-time buyers, according to a property company.

National Homebuyers – which offers a quick sale and rent-back service to homeowners struggling with mortgage repayments - says it has been dealing with a 35 per cent increase of enquiries since the credit crisis first hit the UK in late January.

"The majority of calls we are getting are from first-time buyers who have already run into trouble with their mortgage payments," says Julian King of National Homebuyers.

Mr King added: "The chancellor spends his time blaming global downturns and subprime lending in the US for our troubles but it is clear that a great tranche of stealth taxes is robbing homeowners of any leeway to meet their mortgage payments."

Earlier this month the Citizens Advice Bureau reported a similar rise in the number of calls it was getting from distressed homeowners as the credit crunch bites.

Citizens Advice Bureaux in England and Wales saw mortgage arrears problems shoot up by 35 per cent in the first two months of 2008 compared with the same period in 2007.

National Homebuyers said during the next three months it is expecting the number of properties it purchases to be up three times as during a similar period over the past six years.