HUNDREDS of thousands of homeowners are failing to keep up with mortgage repayments, raising fears that they may lose their homes, as inflation rose yesterday to its highest in nearly two years.
About 770,000 households are believed to have missed one or more mortgage payments in the past 12 months. Last night economists gave warning that the situation would worsen as interest rates are expected to rise before the end of the year.
Figures out yesterday showed that inflation rose to 2.5 per cent in August, the fourth time in a row that it has exceeded the Government’s 2 per cent target. The Bank of England is expected to have little choice but to raise interest rates from 4.75 per cent as a result, forcing more homeowners into arrears.
Homeowners fall behind on repayments