1 in 12 Miss Mortgage Repayments

Despite attempts by the Government to support those struggling with mortgage payments, research by moneyexpert.com has revealed that 1 in 12 homeowners missed at least one mortgage payment over the last six months. This accounts for more than 900,000 homeowners in the UK struggling to such a degree that they have missed at least one scheduled repayment. The number of homeowners in this situation is up by 95% on the same period last year.

The staggering figures provide an unpromising view of the year to come, with repossessions expected to increase beyond their existing rate. Experts have argued that missing a mortgage payment is an indication of a homeowner being in an extremely difficult situation as many people will prioritise paying their mortgage payments above all else. Furthermore, the prediction by the Council of Mortgage Lenders (CML) that repossessions are set to increase to around 75,000 this year has been deemed unrealistic by experts who argue that this prediction is extremely conservative, with the real level of repossessions likely to be much higher.

The arguably conservative prediction from the CML perhaps results from a hope that the difficult economic situation will take an upturn and the soaring unemployment figures will begin to steady out. Unfortunately, at present, unemployment is still on the increase, leaving significant numbers of people in the UK without a job and therefore unable to meet fundamental payments such as mortgages.

A survey by the Nationwide found that 61% of people questioned feel that they would not be able to survive financially if they were unable to go to work. If illness or injury struck, these people would not be able to meet mortgage payments and therefore could be at risk of repossession.

The Government has proposed several initiatives to support those struggling to meet payments, however some of the details in these initiatives have not yet been finalised.

If you are looking for a way to stop repossession of your home, Swift Capital may be able to help you. As equity release experts, we have an enviable reputation in dealing with situations where repossession is pending.