Thousands miss mortgage payments

13 September 2006

A national charity is warning that hundreds of thousands of people are at risk of losing their homes – because they’ve borrowed too much money, and can’t make their mortgage payments.

Citizens Advice says some 770,000 people have missed one or more mortgage repayments in the past 12 months. According to the charity, younger people are most likely to fall behind with their mortgage payments, with 13% of those aged between 21 and 24 missing at least one repayment.

Last year, the charity says it received 87,000 inquiries about actual or threatened homelessness with a further 51,000 inquiries about mortgage and secured loan arrears.

The chief executive of Citizens Advice, David Harker, said they were very concerned about the numbers of people who are missing mortgage payments. He said: “Missing payments on mortgages or secured loans could lead to arrears and possibly repossession. There is a clear need for more information and advice about the consequences of taking on financial commitments, particularly for younger adults.”

According to the charity, many people fail to understand the reality of secured lending. Some 11% of the 2,057 adults surveyed wrongly believed that a secured loan meant they could miss repayments but their home would still be safe.

Citizens Advice says people who have difficulty meeting their mortgage repayments should let their lender know immediately, because those who simply stop paying could be in danger of losing their home.