Homeowners struggling with payments 'rising in number'

17/02/2009

A property recovery firm released stark new figures today - laying bare the current difficulties people are facing with paying off their mortgages in the recession.

Property Portfolio Rescue (PPR) said that so-called "desperate sellers" looking to make a quick sale of the home they can no longer afford to pay for shot up by 118 per cent in 2008.

The number of people having difficulties with their repayments has hit an all-time high, the report added.

Repossessions were also predicted to double to 82,000 in 2009 - while unemployment would rise by one million to three million by the end of the year according to PPR.

Reacting to the report, EuroDebt director Kevin Still commented: "It is imperative that content of the mortgage arrears Protocol is translated into practical strategies for struggling homeowners who have taken their mortgage providers advice and contacted them about their financial difficulties.

"Where appropriate this should include professional debt advisors, who can independently vouch for the accuracy of income and expenditure figures and present these in a format that the lender is familiar, for example the Common Financial Statement. There will be circumstances where re-possession may be appropriate, but equally there are a whole range of alternative debt solutions that can be considered if all parties are willing to consider them based upon the circumstances presented.

He added: "I feel that many homeowners are looking for escape routes without taking proper advice because they feel let down by secured lenders following one dimensional collections policies."

Nick Hopkinson, PPR director, said: "The biggest issue driving enquiries is the immense pressure that businesses and landlords are being put under by their banks.

"The index is a very real indicator of an ever-worsening cycle of distress, resulting in unemployment exceeding three million before the end of the year."

Tags; Housing Debt and Bills, Young Family Finances,

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