45,000 families are 'just coping' with mortgage repayments

Published 14th May 2010

More than 45,000 families are 'just coping' with their mortgage repayments and could easily lose their home, experts warned today.

In a bleak warning, the Council of Mortgage Lenders raised its fears about the impact on families if interest rates or unemployment rises.

The Bank of England has slashed the base rate to an historic low of 0.5 per cent, which has tricked many homeowners into a false sense of security.

But recent research by Shelter, the housing charity, found 5.4million homeowners 'have not thought about how they will pay their mortage if interest rates go up.'

Unemployment has jumped to its highest level for 16 years, and is predicted to keep on climbing with large numbers of public sector job cuts.

The CML's warning comes after it published its latest figures showing that repossessions fell to 9,800 between January and March, compard to 13,200 in the same period last year.

But it sounded the alarm about the number of people who have fallen dangerously behind with their mortgage.

There are 45,100 people whose mortgage arrears are equal to 7.5 per cent or more of their loan. For example, with a £100,000 mortgage, this means their arrears are at least £7,500.

CML director general Michael Coogan warned: 'The financial situation for many households remains fragile.

'A large number of households, who are just coping, still remain vulnerable to shocks that may arise from the economic uncertainty ahead.'

The CML, Shelter, the Citiziens Advice Bureau and the Building Societies Association today wrote to the Chancellor to 'urgently' emphasis the need to support vulnerable homeowners.

Shelter chief executive Campbell Robb said: 'We know for a significant number of people, just keeping on top of their current mortgage repayments is a constant struggle.'

Source: ' Daily Mail '

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