Mortgage nightmares

Interest rates have sky rocketed in Australia recently. You can’t open the paper without reading a story about a home owner forced to give up their how due to their inability to repay their mortgage. These people may have found mortgage payment protection a good idea perhaps. But what is the cause of this? Why are people having so much trouble paying back what they owe?

Besides the fact that housing prices have gone through the roof, a large number of financial institutions are making it increasingly easy for people to sign up to debt. It’s not unusual to hear stories of people taking on loans for 110% of the purchase price. Clearly, mortgages like that put people on the back foot from day one.

Obviously if you’ve taken out a 110% loan, things are going to become difficult each time interest rates increase. As someone thinking of buying a property, I find the current mortgage and interest rate trends a little disturbing. The way things are headed, I’m beginning to doubt whether or not I’ll ever own my own place.

This post sponsored by ThriftyScot.co.uk and their current bad credit mortgage campaign.

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