A report from the national charity showed that 770,000 people in Great Britain had missed one or more mortgage payments in the last year. It warned that borrowers should think carefully before taking on any additional debt. It said 13 per cent of 21-24 year olds surveyed had missed a mortgage payment in the last 12 months and said it had dealt with over 51,000 enquiries about mortgage and secured loan arrears and over 87,000 enquiries about threatened homelessness in 2005/6.
David Harker, chief executive of Citizens Advice, said: “These figures do not surprise us. We are very concerned about the numbers of people who are missing payments on mortgages and secured loans as this could lead to arrears and possibly repossessions. There is a clear need for more information and advice about the consequences of taking on financial commitments, particularly among younger adults.”
Thomas Reeh, chief executive officer at blackandwhite.co.uk, said the news was of great concern. He said: “A growth in the number of missed mortgage payments is a worrying trend, given its priority in the order of household debts and a further rise in rates will pressure affordability ratios. The consumer debt problem is exacerbated by rising house prices.”
Drew Wotherspoon, spokesperson at John Charcol said: “A mortgage is the largest financial commitment most people are ever likely to make and they should always seek professional advice on what they can and cannot afford before taking a home loan out. With the continual increase in house prices, people often need to stretch themselves to achieve the required mortgage amount, but overstretching is a mistake.”
