Mortgage troubles loom for many

According to figures published Monday by the Financial Services Authority, one in five UK borrowers are worried about meeting their mortgage repayments over the next year.

[ClickPress, Wed Mar 05 2008] According to figures published Monday by the Financial Services Authority, one in five UK borrowers are worried about meeting their mortgage repayments over the next year. The FSA said that a quarter of all borrowers facing financial difficulties have made no provision for meeting the additional cost of their mortgages.

The worsening of economic conditions and the increase in basic household expenditure are adding further pressure on people’s finances.

To help consumers make informed decisions about their finances and find the best mortgage, the FSA is launching a £2 million advertising campaign, aimed particularly at those 1.4 million borrowers whose fixed-rate or discount deals are coming to an end in 2008. Consumers can find the FSA’s checklists, mortgage tables and advice for borrowers at www.moneymadeclear.fsa.gov.uk.
While the rate of home repossessions and loan defaults in the UK is not high by historic standards, it has risen over the past few months, reaching 21% in 2007, its highest level since 1999. And the situation could worsen if the overall economy slows down further and unemployment rises.

Furthermore, UK high-street lenders are no longer offering deals worth more than the cost of the borrower’s home.

Lawrence Smith of Decision Homebuyers said, “The new FSA research shows these are worrying times for many home owners in the UK facing higher mortgages when their current deals run out. It is crucial for borrowers to think ahead and consider all their options carefully, to avoid becoming another repossession statistic.”








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Email: phil@dhbuyers.co.uk
Web: www.decisionhomebuyers.co.uk

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Decision Homebuyers carries out daily surveys of the national media to provide up-to-date news and commentary on the UK property market.

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