6m 'suffer from repossession fears'

24/03/2009

Repossession is a major concern for almost half of UK mortgage holders, new research from consumer group Which? has shown.

This means that losing their home after failing to keep up on repayments is a worry for around six million people.

Released yesterday, the study also found that 62 per cent of workers fear losing their jobs - with unemployment on the rise due to the credit crunch.

The falling house prices also caused by the crisis has led to one in four mortgage holders fearing that they will go into negative equity over the next 12 months.

Kevin Still, EuroDebt director, said: "With job security or loss of income being such a key issue for many consumers in financial difficulty, it is inevitable that concerns over losing the roof over your head will be high. Home owners need confidence that mortgage providers will genuinely listen to their problems and offer constructive advice and support to find the right type of transitional solution where people are struggling to pay the mortgage."

He added: "Some of the government initiatives provide a basis for concerned consumers to take professional advice and for lenders to offer breathing space whilst a complete review is undertaken of the household finances, including unsecured borrowing - which can be substantial. In December 2008, the average EuroDebt homeowner starting a Debt Management Plan had over £38,000 of unsecured debt."

Which? personal finance campaigner Doug Taylor commented: "With people spending sleepless nights worrying about job losses and repossessions, the industry needs to demonstrate that it wants to win back the trust of the British public by fully embracing government initiatives."

Recent official figures showed that unemployment levels have risen to over two million for the first time in over a decade.

Meanwhile, house prices have shrunk by almost 20 per cent and repossessions increased by around 50 per cent over the past year.

Tags; Housing Debt and Bills, Young Family Finances,

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