National Homebuyers: 'Thousands to be hit by insolvency'

Personal insolvencies are set to soar this year as Christmas debts, rising mortgage payments and soaring food and fuel costs take their toll on already stretched finances.

[ClickPress, Thu Jan 03 2008] That is the message coming from the accountancy firm Grant Thornton which said the total number of personal insolvencies will jump to at least 120,000 this year, almost triple the equivalent figure in 2004, when just under 47,000 people went bankrupt.

It revealed that more than nine million people in Britain are now struggling to pay credit card bills and mortgages, with the average owed by problem debtors hitting £30,000.

Mike Gerrard, the head of Grant Thornton's personal insolvency practice, said: "Sadly, many individuals spend up on credit at Christmas and pay no heed to the financial warning bells. Come January, they find themselves in a situation where previous financial woes are compounded by the bills arriving from the festive season and in these situations insolvency becomes the only way out."

In addition, as fixed rate mortgage deals come to an end an estimated 1.4 million people will have to pay more for their home loans - costing them an extra £150 to £250 a month.

The news will be a blow to homeowners says National Homebuyers. "Homeowners in distress should consider a fast property sale in a bid to avoid repossession" says director Julian King.

"Thousands of homeowners will be coming off their fixed rate mortgage deals in 2008.

"An estimated 1.4 million people will have to pay more for their home loans - costing them an extra £150 to £250 a month.

"Various mortgage rescue schemes are available and National Homebuyers' Sell and Rent Back solution allows the homeowner to release equity in their home and remain living there as a tenant. We have many options available that suit homeowners' needs" says Mr King.

National Homebuyers are the UK's leading quick house sale company that guarantees to make an offer on any UK property, regardless of its condition or location. The company are the UK's leading provider of mortgage rescue schemes.

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