Mortgage payments are being missed..

When I was approached to write these weekly columns, the brief was to be descriptive and update readers with news from the world of mortgages not on general release. Whilst I knew times were tough, I didn’t realise how little positive news there actually is (or isn’t) in our market! Believe me, I look for positives but the stark reality of the current situation (and that still looming) makes it difficult. The statistics released by ‘creditaction’ for March, show the reality:
o Average house prices have decreased by £95 every day during the last 12 months.
o A property is repossessed every 10 minutes.
o 2,915 people are made redundant daily.
o 1 person is declared bankrupt or insolvent every 4.5 minutes.
o 33,600 applications for credit have been turned down every day during the last six months.
According to research from Which? homeowners are really feeling the pinch with 62% of the working population fretful that they or their partner may lose their job. Some 43% joint income households are anxious they won’t be able to pay their mortgage.
Despite house prices stabilising the ‘experts’ predict 2010 before ‘some normality’ returns with matters likely to get worse before they get better. Recent news from RBS with the loss of another 9,000 jobs and BT suggesting a further 10,000, indicates that the knock-on market effect will be huge.
Moneyexpert.com estimates that 8% of all mortgages holders have missed one payment during the last six months. One in twelve borrowers! Additionally, they suggest that nearly a third of all adults would face financial disaster within two months if they lost their jobs. Half of those believe they would only last a month.
Simply put, if you miss a mortgage payment, finding a lender to offer you a new mortgage is tough. Miss two or three and its as good as mission impossible.
I have said this with regular monotony but there really is no better time to review your finances and plan ahead for the next two to three years. Ask yourself questions including - if I lose my job how will I pay my mortgage? How will I support my family? If you are stuck for answers, speak to AToM or visit our website for more information. Don’t leave it any longer. Let us help you plan a positive future.