Mortgage Is Top Concern For Callers To Debt Helpline

Writing by Payplan Media Release - Grantham on Friday 9 May 2008

Mortgage Possession Figures - 17% Rise In First Quarter 2008

27,530 mortgage possession orders made - 17% higher than the first quarter in 2007

Today’s jump in the number of mortgage possession orders issued since the beginning of the year has come as little surprise to debt solutions service, Payplan, which has been receiving record numbers of calls from people concerned they might lose their homes.

A survey of new callers to Payplan’s helpline showed that over half had seen an increase in their mortgage payment. Of these people, 35 per cent say that concerns about their mortgage had prompted their call for help.

Payplan’s managing director, John Fairhurst, said:

“Today’s figures reflect what we already know from talking to our clients. Many simply don’t have enough cash to cover their outgoings.

Of particular concern are people with poor credit histories who are coming to the end of fixed rate deals. With no access to a new deal they have no alternative but to pay their existing lender’s standard rate which often adds hundreds of pounds a month to already overstretched budgets. Not surprisingly this can, and often does, lead to financial meltdown. Unless lenders can offer this group of borrowers some sort of financial cushion we can only see possession figures rising further.”

Notes to editors

The figures showing the latest national statistics on mortgage and landlord possessions, are released by the Ministry of Justice on a quarterly basis. The quarterly releases presents statistics on possession actions issued in county courts by mortgage lenders and social and private landlords in England and Wales. The figures represent court actions for possession and not actual homes repossessed.

About Payplan - Payplan provides free, ethical and immediate debt help to over 100,000 people every year, working closely with organisations in the field of money advice and consumer and employee welfare.

Call Payplan free on 0800 917 7819 six days a week to speak with an experienced debt adviser. Lines are open 8am to 9pm Monday to Friday and 9am to 3pm on Saturdays. Or submit your details online using the Payplan Debt Calculator.

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