Mortgage repayments heading for a crisis |
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Published
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Wed, 13 Sep 2006 10:15
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LONDON - A national charity has warned that hundreds of thousands of people are falling behind on their mortgage repayments and risk losing their homes. A Citizens Advice Bureau survey revealed that at least 770,000 people have missed one or more repayments over the last 12 months.
The survey of 2,057 adults also found that one in ten believed that missing a repayment did not put their home at risk. "We are very concerned about the numbers of people who are missing payments.
Missing payments on mortgages or secured loans could lead to arrears and possibly repossession," said David Harker, chief executive of Citizens Advice. "There is a clear need for more information and advice about the consequences of taking on financial commitments, particularly for younger adults."
The survey found that younger adults were more likely to fall behind on repayments. Another finding was that 11 percent believed that if they had a secured loan, it meant they could miss repayments and still not lose their home. Another 10 percent felt that it was an arrangement where the borrowers could pay back whatever they felt like paying. The survey said that 2 million people might not be able to keep up with repayments.
"If people are considering becoming homeowners they need to understand clearly what they are taking on. We don't want people to borrow far more than they can afford," Harker said. Christopher Dean, for the Council of Mortgage Lenders said that young people were depending on their parents to buy them a property. “Young people are stretching themselves in order to get started, but they are often getting help from the parents. to help them to meet their payments. It shows how important home ownership is that people are willing to borrow so much,” he said.
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