1 in 12 missing mortgage payments

There has been a marked increase in the number of homeowners missing a mortgage payment in the last year, latest research has revealed.

In the final six months of 2008, 902,000 homeowners missed a mortgage payment, in comparison to 463,000 during the same period a year earlier.

This makes a shocking increase of 95% and means that the number of people unable to pay their mortgage has gone from one in twenty five, to one in twelve during the last year.

The rise has been attributed to the current credit crisis, growing unemployment and rising living costs. However, it would seem that the Bank of England’s continued rate cuts have done little to stop the number of people struggling to control their personal finances.

Financial experts have said that this new statistic will put added pressure on the Bank of England to further slash rates this week when it convenes. The base rate currently stands at 1.5%.

Experts have urged homeowners facing difficulties to contact their lenders or a debt advisor in order to seek help and stop the situation from worsening.

Director of MoneyExpert.com, Sean Gardner has commented that: “Missing a mortgage payment is about as serious as it gets and is a clear signal that your finances are at breaking point.”

Article sourced from www.debtmanagementtoday.co.uk 3rd February 2009