| Around half a million Britons have missed a mortgage | | | | largely due to the problems that first-time buyers |
| payment in the last six months, new figures show. | | | | experience when trying to take their initial steps on |
| In research carried out by MoneyExpert, it was | | | | the property ladder. |
| revealed that some 463,000 homeowners did not | | | | In addition, MoneyExpert pointed out that consumers |
| meet such a demand for payment in the six months | | | | struggling to get their finances back on track after |
| following July 2007. Overall, it was suggested that | | | | the Christmas period may be a possible reason for |
| such consumers account for about four per cent of | | | | the level of missed payments. However, it was |
| the total 11.8 million outstanding mortgages in Britain. | | | | suggested that the decision in December by the |
| And in being unable to pay such a demand on their | | | | Bank of England's monetary policy committee to cut |
| spending, it could be possible that consumers are | | | | the base rate of interest to 5.5 per cent may help to |
| developing problems in meeting other sources of | | | | reduce pressure on household finances. |
| financial constraint. Such areas could well include | | | | Should lenders opt to pass on such cuts to their |
| council tax, personal loans and grocery and utility bills. | | | | customers, it is possible that they will see a fall in the |
| Commenting on the figures, Sean Gardner, chief | | | | amount of their monthly mortgage payments. The |
| executive of MoneyExpert, said: "Missing a mortgage | | | | rate of interest attached to personal loans, credit |
| payment doesn't incur an automatic charge like failing | | | | cards and other forms of borrowing may also fall. |
| to pay your credit card bill. But it is a sign of real | | | | Those concerned about their propensity to meet |
| distress as keeping a roof over your head should be | | | | mortgage payments and other constraints on their |
| the priority for most of us. It's clear that many | | | | finances might wish to consider applying for a |
| homeowners are feeling the strain of successive | | | | low-cost loan. In using such a loan as a means of |
| interest rate hikes but if the result is that you can't | | | | debt consolidation, borrowers may discover they can |
| pay your mortgage then you should take action | | | | merge numerous spending demands into a single low |
| immediately. If you are struggling to afford the | | | | monthly repayment. This could be particularly useful |
| repayments then now is not the time to stick your | | | | for people worried about not being able to pay their |
| head in the sand." | | | | mortgage. |
| He advised those who are concerned about their | | | | Research conducted by moneysupermarket last year |
| ability to meet demands for payment should get in | | | | indicated that in having a cheque or card rejected |
| touch with their loan lender as soon as possible. By | | | | when making a mortgage repayment, or missing a |
| doing so, Mr Gardner stated that borrowers may be | | | | mortgage payment altogether, consumers may find |
| able to reduce pressure on their finances | | | | that they receive "punitive charges" ranging up to 100 |
| "enormously". | | | | pounds. It is also possible that not meeting such a |
| Research from the price comparison website also | | | | demand on spending could damage borrowers' credit |
| indicated that homeowners between the ages of 25 | | | | profile, so impinging their access to cheap loans and |
| and 34 are the most likely to have not made a | | | | other competitively-priced financial products in the |
| mortgage payment. It was suggested that this is | | | | future. |