Mortgage Debt Rising Fast

The cost of buying a home in Northern Ireland is escalating fast with mortgage debt rising faster than anywhere else in the UK.

The news comes as the property market begins to feel the full effects of the international credit crunch and threatens to spell financial heartache for thousands of Ulster homeowners.

As a result, house repossessions via the courts have risen too - by almost 40% in just six years - with experts predicting that figure will rocket over the coming months.

Court Service figures confirm a significant increase in mortgage repossession actions - from approximately 1,600 in 2002, up to 2,213 in 2007 - but at the same time, research by credit reference agency Experian has revealed that on top of growing mortgage debt, Northern Ireland also experienced the biggest change in total debt, up 23% in the last 12 months.

The findings also showed that spiralling house prices - where the NI average is £250,586, and the UK is £222,256 - represent a hike of 39% in just one year, compared with just 6% nationwide.

Analysts agree there are tough times ahead - especially given the recent hikes in fuel prices, rates and grocery bills - with some feeling that consumers were duped during the property boom.

(BMcC)