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More than a million home owners struggle to pay mortgage

A recent report suggests that more than one million home owners are struggling to meet their mortgage repayments.

The report, from L & C Mortgages, has found that 2.6 million borrowers believe that their mortgage repayments are too high, while 1.4 million home owners in the UK are finding it difficult to meet their repayments. The study shows that more than half have never tried to re-mortgage for a better deal, while 2.5 million have had to reduce their spending so that they can afford to pay their mortgage.

The report also gave information about the average UK debt, which is £10,048 for credit cards, student loans and overdrafts. For individuals aged between 18 and 34, the average debt rises to £12,992. More than a third of home owners, over four million, are on the Standard Variable Rate (SVR), which means that they could see their monthly repayments increase if interest rates rise.

David Hollingworth, the associate director of L & C Mortgages, said that the report indicates that some home owners are ‘just about managing’ in some areas of their life. Savings have also recorded low levels during the last year, while food and energy continue to rise, which will increase the pressure for borrowers paying their mortgage.

Borrowers who are on a SVR mortgage, may be able to find a cheaper deal with the help of a CeMAP qualified mortgage adviser, making it easier to meet monthly mortgage repayments.

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