As more people find that they cannot keep their mortgages, the lines for new council house mortgages are growing longer. The main problem is that there simply aren’t enough of these homes to go around. With a projected 3 million home loans that could go into default by the end of the year, the council house mortgage issue may come to a head. In the meantime, several government officials are pushing for more attention on the issue and urging that more homes be built.Liberal Democrat spokeswoman Julia Goldsworthy said, “Families can no longer claim benefits to pay mortgage interest when they are made redundant. Since the last crash there are one million fewer homes to rent and council house waiting lists have soared by 60% in the last 10 years. It is a miserable situation that means these families now have a long way to fall.”For those seeking a council house mortgage after defaulting on their current loan, there may be a tough road ahead. Banks have tightened up their lending requirements significantly and although consumers sometimes get help with a council house mortgage, there may be many that are turned away, making the problem even worse.
Related reading: Council House Mortgages
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