Rise in Mortgage Possession Claims in Ceredigion
Ceredigion has seen a rise in mortgage possession claims, with 23 claims made in the year to March, although none ultimately led to a property being repossessed by a bailiff. This is a significant increase from the six claims made in 2022-23, which led to one home being repossessed.
The Cost of Living Crisis and High Mortgage Costs
A charity has warned that the cost-of-living crisis and high mortgage costs are putting people in danger of becoming homeless. Figures from the Ministry of Justice show that across England and Wales, there were 5,182 mortgage possession claims made in the first quarter of 2024, a 28% increase from 4,035 a year earlier.
“We are concerned about the number of people who are at risk of becoming homeless.” - Law Society president Nick Emmerson
Renters are also suffering, with a 6% increase in landlord claims over the same period across the country. In Ceredigion, landlords made 24 claims in the year to March, with seven resulting in a repossession. This was down from 2022-23, when there were 57.
Mortgage rates remain high
Mortgage rates have remained high since surging in late 2021, albeit with some rates being cut in recent months. This has put many homeowners at risk of falling behind on their mortgage payments.
“Rent or mortgage payments are priority bills, so if you are in arrears with these payments, they should always be addressed before any consumer credit debt.” - Jonathan Chesterman, Policy Manager at StepChange
Homelessness is a growing concern
The charity StepChange offers advice and support for those in arrears with their mortgage or rent. They stress the importance of communicating with lenders and seeking help as early as possible.
A Treasury spokesperson said, “Interest rates are high across the developed world as economies work to tackle high inflation and the UK is no different.”
Inflation remains a challenge
While it is welcome news that inflation has been halved, many people are continuing to struggle. Anyone struggling with their mortgages should contact their lender and consider the flexibilities in the Mortgage Charter, which can make it easier to manage monthly repayments and gives extra protections against repossessions.
