One in four people are worried about their home being repossessed

Half the population concerned about the effects of a possible rise in mortgage rates, says new report.

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The Independent Online

The figures published today by  Which? suggest a fragile housing market is dividing the nation. The report argues that an increasing gap is growing between older, more financially secure homeowners and those aged 30-49 who bought their homes recently and are struggling as well as younger people who cannot get on the property ladder.

Their research also reveals taht half the population are worried about mortgage rates and just over a quarter of people with mortgages are concerned having their home repossessed.

Which?'s Quarterly Consumer Report also reveals that home ownership is increasingly out of reach for first-time buyers with rising rents making it harder for people to save for the large deposits needed. More than half of people under 30 who do not own a home are worried about getting on the property ladder.

"The housing market is failing not just one but two generations of consumers," said  Which? executive director Richard Lloyd, "with many mortgage prisoners trapped on their current deal and young people excluded from the housing market altogether.

"The Chancellor must put tougher obligations on banks that get cheap finance through the Government's Funding for Lending Scheme so that more is done to help those who are struggling through no fault of their own, and especially to ensure that mortgage prisoners and first time buyers can benefit from lower borrowing costs."