High inflation is tough for homeowners

High inflation is creating a "toxic mix" for families trying to pay cheap mortgages, it has been claimed.

The Trade Union Congress TUC has warned that the soaring cost of living caused by high inflation combined with pay freezes is creating a squeeze on monthly income, which will continue for some time.

"With a weak labour market, growth at a standstill, and both business and consumer confidence down, inflation is the only measure that's bounced back since the recession, creating a toxic mix for families' living standards," said TUC general secretary Brendan Barber.

He said that the recent fall in inflation from five per cent to 4.2 per cent in June will be little comfort to families, including those with cheap mortgages.

Kensington has meanwhile increased its maximum Loan to Value LTV to 90 per cent, in order to make mortgages more accessible and affordable to those trying to take the first step on the property ladder.

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2011-07-12 13:42:09 © Moneyextra.com