‘Given up’ homes down by more than half

More than half (55%) were sold to avoid mortgage arrears or to avoid court actions by the lender with the rest being taking over by the mortgage lender or the owner left voluntarily or by court order.

However, Castle Trust has cautioned homeowners to be wary of a rise in inflation and an increase in the UK base rate, which has been held at 0.5% for four years. Indeed recent ONS research shows just how significant a proportion (34%2) of a household’s monthly expenditure goes on mortgage payments.

Castle Trust believes households can search for new and innovative lending products to protect themselves from any potential rises in mortgage costs.

Sean Oldfield, chief executive officer, Castle Trust said: "The number of homes being given up has fallen but the risk to homeowners of rising mortgage rates is still a major issue which shared equity can play a major role in reducing, including the risk of going into arrears, by controlling monthly mortgage commitments.

"The Partnership Mortgage helps lenders and borrowers overcome this issue so many more good quality customers can secure the mortgage they want while HouSAs enable investors to gain exposure to the national housing market directly or through an ISA or a SIPP."

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