FreedomWide- DEBT CONSOLIDATION, LOWER MONTHLY PAYMENTS, CONSOLIDATE DEBT

FIRST THE Treasury, and then a powerful trade body, declared “the era of cheap mortgages is over” last week as a swathe of evidence exposed the extent of the looming crisis for UK homeowners.

With mortgage deals now being pulled daily, leaving few options for remortgaging, debt advisers fear that desperate homeowners will be swept into the arms of a new breed of mortgage “bottom-feeders” promising to make their financial problems disappear through sale-and-leaseback deals.

Citizens Advice has seen a 35% leap in people struggling with mortgage payments in the first two months of 2008 just as the Office for National Statistics disclosed that rocketing gas and electricity prices have helped push consumer price inflation to 2.5%.

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Almost 40% of households report plans to cut back on the weekly food shop to help keep up the mortgage, according to financial information group, Fool.co.uk. One in five single parents are living in fear of losing their home in the next 12 months, says retail group, Brighthouse.

Commenting on the situation in Scotland, Yvonne Gallagher, chief executive of Money Advice Scotland - the umbrella organisation for free debt counselling - said: “I hate to sound all doom-and-gloom, but it is not a good picture.”
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Tags: Mortgage Defaults, Mortgage News, uk

This entry was posted on Sunday, March 23rd, 2008 at 6:00 pm and is filed under Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.