Homeowners ‘may struggle financially’ in the new year

Posted: 29 Dec 2009 10:23:51 GMT

Some homeowners may find it more difficult to keep up their mortgage payments in the new year, one expert believes.

Chris Jenkins, co-owner of the Homeowners Advice Centre, says that he typically sees an increase in the number of people seeking debt advice in January and February because people “over-extend” themselves during the festive season.

“A lot of people tend to bury their head coming up to Christmas because they have something to look forward to, presents to save for and [they] stick a few things on credit cards,” he suggests.

Mr Jenkins adds that when homeowners start to receive bills in the early part of 2010, some people may start to struggle with mortgage repayments.

According to the Financial Services Authority, some 14,000 homes were repossessed in the third quarter of 2009 - this is a five per cent decrease from the peak that was seen at the start of the year.

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