A surge in Northern Irish homeowners facing repossession has been reported in the first quarter of 2022. Department of Justice figures revealed that 285 homeowners faced court action after defaulting on their mortgage payments. The number represents a nearly 25% rise since last year. While Northern Irish homeowners now pay almost £3,000 more for their mortgages per year compared to 2021, repossession figures are still below their pre-pandemic peak.
Single mother, Nadine McKenna had to sell her Lisburn home due to rising mortgage costs. The property was the first she ever owned, and she’d lived in it for 13 years. She faced monthly payments that were up £240 on the previous year’s typical level. Already managing over £1,000 per month in childcare costs, McKenna had no choice but to reach out to her family for financial assistance. Her support network helped her buy a smaller home in Lurgan.
Charity Housing Rights said many struggling to pay their mortgage are less likely to receive legal aid or solicitor support because they’re in debt. This leaves many of them turning to charities like Housing Rights for help with legal advice and emergency court representation.
It is believed that tens of thousands of Northern Irish homeowners are expected to remortgage this year as their fixed-rate deals expire. Property experts have dubbed this a “mortgage timebomb.” Older homeowners, those with lower incomes, and those with disabilities are particularly vulnerable to repossession. Research by Housing Rights suggests that many of those struggling to pay are on variable or interest-only mortgages, which have proved unreliable in the face of 14 Bank of England interest rate hikes over the last three years.
Dr Michael McCord, a property expert at Ulster University warned that those remortgaging will have to accept far higher rates than those they secured during the pandemic. Finally, he suggested that housing pressure will continue if interest rates remain high, but says it is likely that more competitive mortgage deals will emerge if the Bank of England introduces interest rate cuts in the coming months
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