Over half a million in danger of falling behind mortgages

Posted: 19 Feb 2009 08:35:49 GMT

There are over half a million households currently at risk of falling behind on their mortgage repayments according to a joint statement released by the Council of Mortgage Lenders (CML), Citizens Advice Bureaux (CAB) and Shelter.

Following previous forecasts from the CML that the number of repossessions made this year could reach 75,000 the statement offers advice regarding action to take in the event of a personal financial crisis.

With such negative views surrounding the market at present, the opportunity to downsize could be increasingly attractive.

Buying a home online could also save money by avoiding the need to use expensive estate agents.

For the mean time, however, Michael Coogan, CML director general, advised current homeowners to discuss potential problems with their mortgage lenders.

"Unfortunately more borrowers are getting into financial difficulty, but the vast majority of those who face temporary problems will be able to work with their lender to find a solution," Mr Coogan said.

Research from CAB discovered a 46 per cent rise in the number of enquiries regarding the options involved with secured loan and mortgage arrears between April and December 2008 and the same period in the year previous.



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