First Time Buyers Desperate For Relief
Homeowners are plagued by high house prices and high interest rates. Many first time homebuyers are 'on the knife edge of poverty' says BBC News.
According to government statistics, most people defined as 'poverty stricken' are homeowners. Poverty is defined by social scientists as earning less than 60% of the national average income.
"People normally think of people in poverty being single mums on council estates or people living in a rented bed-sit but this is a stereotype.
"By far the largest number of people in poverty are homeowners, many of them young first-time buyers." Professor Roger Burrows of the University of York's sociology department, an expert on UK poverty, told BBC News.
RICS reports that homeowners are now paying 43% of their income into their monthly mortgage payment, up from the 30% in 2004.
Marianne Ten Kate of the Elizabeth Finn Trust, a charity which offers financial support to professionals who fall on hard times, millions of Britons could be living on a poverty knife-edge.
"Savings have fallen to record low levels and millions do not have a safety net.
"It only takes the lightest of touches to send people spiralling down - a period of illness or a divorce," according to Ms Ten Kate.
"If you consider that poverty is about lack of opportunity what could be more restricting than being mortgaged up to the hilt so much so that even a small change in your personal financial circumstances could lead to you losing the roof over your head," Professor Burrows said.
The problem is that most of the people who are entitled to aid and assistance do not take it. Recent research shows that only 40% of elderly homeowners claim their council tax benefit.
Many of those who would benefit from debt management help, or for assistance consolidating their loans, do not realize this help is free and readily available.
Published on January 23, 2008
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