Mortgage Payments Missed As More Borrowers Are In ‘Distress’

The amount of mortgage payments missed this year is
approaching the 500,000 barrier, new figures from
MoneyExpert reveal.

According to research by the firm, some 460,000 repayments
have been missed since the beginning of 2007 - an average
of about 77,000 per month. However, following the decision
by the Bank of England's monetary policy committee (MPC) to
increase the base rate to 5.75 per cent this number could
be set to rise further as the Bank looks to "pile on the
pressure".

Despite the MPC having risen the base rate five times, by a
total of 1.25 per cent, over the last year the financial
services company pointed out that industry experts believe
more increases could take place. Consequently, interest
rates on tracker and standard variable mortgages have
"inevitably" increased. Meanwhile, those coming to the end
of their fixed-rate products are set to find their monthly
secured loan repayments becoming "more expensive".

Chief executive Sean Gardner said: "Missing a mortgage
payment is a real signal of distress and anyone in such
dire straits needs to address the issue as soon as
possible. We are a long way from the dark days of the late
1980s and early 1990s when more than a million lost their
homes but many are feeling the strain. Anyone who has
missed a mortgage payment should for a start be talking to
their lender and letting them know what is going on."

Mr Gardner added that such consumers should look to reduce
their spending and cut debts as soon as possible. "That
ought to mean sorting out their finances and getting all
loans and credit cards under control," he added. The
executive pointed to debt consolidation and taking out a
secured loan against the value of property as a way of
meeting demands for any outstanding mortgage payments.

Meanwhile, research carried out earlier this year indicated
that some 36,000 homeowners defaulted on their mortgage
every month over the duration of 2006, with this figure now
predicted to be "close to doubling" by the end of this
year. The financial company also pointed to figures from
the Council of Mortgage Lenders indicating that some 59,000
mortgages were between three and six months in arrears as
of the end of last year. Statistics from MoneyExpert also
signified that those aged between 35 and 44 are the most
likely to miss making a payment - with some three per cent
said to have done so over the last six months.

Earlier today, Arthur Morgan, Sinn Fein spokesperson for
housing, claimed that the government needs to take more
steps to curb rising mortgage debt. "More can and should be
done terms of mortgage interest relief to help protect
vulnerable homeowners in particular those on average and
lower incomes," he said. Mr Morgan suggested that
government officials have reported that there is not a
problem with affordability within the property sector
despite the emergence of 100 per cent mortgages and "the
fact that young couples were borrowing unprecedented sums
at a time of historically low interest rates".

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Abbi Rouse writes for All About Loans, where our visitors
can apply online for unsecured loans for tenants, and
secured homeowner loans. Visit today:
http://news.allaboutloans.co.uk