Mortgage advice is something that many people will be seeking in this time of economic uncertainty. Having seen five interest rate increases in the last year most repayments have seen an average 135 pounds per month increase. This is not something your average worker can afford.
Unless, that is, you are a company director or chief executive. These lucky beggars saw a thirty per cent salary increase bringing their average take home pay to over 210,000 pounds per annum. The second biggest sector to see high wage rises was dentists with over a twenty four per cent pay rise, bringing them up to over 30,000. pounds At least our pain brings someone else pleasure!
The current national minimum wage is 5.52 pounds per hour. If you worked an average 40 hour week you should, in theory, see a yearly pay over 11,000. pounds With the average UK house price at 200,000 pounds what are the chances of getting on the property ladder, with or without mortgage advice?
It seems quite ironic that, according to statistics, a caretaker can earn 2,000 pounds a year more than a chef and a filing clerk can better both these wages. It would appear that wages no longer reflect the amount of skill involved in a job or how much call there is for that particular profession.
Biological scientists are pretty important people but they earn 30,000 pounds a year less than a pilot. It seems there is no predictability in the job market as in the financial field at the moment. This could be why employees of every degree are seeking mortgage advice to get the best deal for their budget.
And you really have to feel for the lowly City brokers who have had less than a one per cent pay rise in the last year, taking home a paltry 94,000. pounds Of course, they are going to be seeking mortgage advice to make sure they can stretch that salary as far as possible.
It seems quite amazing that at one end of the pay scale you have no chance of even getting a thirty year mortgage whereas at the other end, you could buy a house outright within a year or two.
The first half of last year saw 14,000 house repossessions in the UK, which has increased thirty per cent on the previous year and many more are to face the same fate this year. Mortgage advice has been sought left, right and centre by homeowners trying to avoid this situation but many are still being squeezed into impossible repayments.
Banks are even cashing in on the crisis by charging up to 100 pounds for debt advice. Do they not realise that if you had 100 pounds you would be paying it off your debt not paying to someone else to tell you what debts to pay?
A short term solution to a money crisis is to switch your repayment mortgage to an interest only. This can reduce monthly outlay quite drastically and may just be enough to see you through the financial drought until things begin to turn around and you are able to step up your payments again.
Some people have fallen for the schemes whereby a company will purchase your house at a vastly reduced rate and allow you to continue living in it for a rental fee. This all seems very easy and a quick solution given their promises to complete in a week but you will receive much less than your house is worth and also face the possibility of being evicted after only a short term in renting.
The UK is set to have 8.6 million black listed people by 2011 who will be unable to get credit or mortgages, which brings us back to the good old days of living within our means but until we are all able to do that, mortgage advice is the way to go.
Financial expert Catherine Harvey looks at the mortgage advice sought by those struggling with money.