Research conducted by a homelessness charity has revealed that the number of people seeking help with financial difficulties has increased eightfold since last year.
The report follows stark warnings from the Financial Services Authority (FSA) – which warned that more than 1 million homeowners are at risk of losing their homes due to changes in the economy.
Following the report, the charity called on the FSA to clamp down on those lenders that offer customers unaffordable products and are then quick to repossess, and called for a shake-up of the court system to ensure that homeowners are given fair treatment in repossession cases.
The charity was contacted by around 80,000 borrowers regarding problems with repayments on their mortgages, as compared to only 10,000 contacts in 2006.
The report was critical of the lack of resources and access to independent advice for those who fall into arrears, as well as showing the need for more resources to help homeowners struggling with household debts.
The charity has called on government departments to set up an advice service in partnership with mortgage companies and also suggested schemes that would allow people in financial difficulties to keep their properties.
For those facing financial difficulties with regards to their mortgages, there are a number of support levels in place, such as income support, but these usually involve a lot of paperwork and lengthy waiting periods for payments.
Payment protection insurance is available, but tends to offer limited cover and payments are usually subject to very strict criteria.
With other research showing that last year’s interest rate increases and the ongoing credit crisis has added more than £1,000 to the costs of servicing mortgages, homeowners are facing a tense and uncertain year.
Related Articles
Secured loans for homeowners: because home provides more than
living space
By: Marsha Claire | 13/09/2005 | Finance
Property. It enables you to get loans according to your
needs and also get good deals for easy repayment. They basically
mean that if you are a home owner, you can borrow money.
Planning for Moving House
By: Joseph Kenny | 12/01/2006 | Finance
If you have just bought or are considering buying a new home, then you will also need to plan the process of moving home. While there are many things that you have to remember, planning them in advance will make the whole move easier and less traumatic.
Financial Terminology: Jargon Buster A - E
By: Richard Evans | 15/03/2006 | Finance
A 1. Account holder The person who has a personal loan account. 2. Advance The mortgage loan itself is called the advance. 3. APR (Annual Percentage Rate) An interest rate designed to show you the total annual cost of getting credit.
Balloon Mortgages Explained
By: Joseph Kenny | 25/04/2006 | Mortgage
A balloon mortgage is a loan that is provided for a short period of time for a set amount of money. Balloon mortgages will often involve periodic payments that are made at a fixed interest rate. During this period, the loan may not be amortized. The balance of the loan has to be paid in full at a specific time.
Find Out What A Balloon Payment Mortgage Is
By: Lorna Mclaren | 17/05/2006 | Mortgage
Initally the interest rates and monthly payments are lower with a balloon payment mortgage but there is a one off large payment at the end of the term.
Mortgages. The Return Of The Mega-Mortgage.
By: Michael Challiner | 15/06/2006 | Mortgage
With the housing market is now showing marked signs of recovery, especially in the South and London, the number of homeowners mortgaging for more than £500,00 is increasing. (Also see Latest Market Facts at the end of this article.
An Increasing Trend In Lending
By: Jim Glu | 22/06/2006 | Finance
The reasons for mortgages or loans are because of the high spending rate of the people in USA. According to the news agency USA TODAY there seems to be a reduction in the saving rate of the people.
Debt Consolidation And Bankruptcy
By: Jim Glu | 03/07/2006 | Finance
People refinance mainly due to debt consolidation only. The equity is used to reduce their monthly payments. Many people are not able to pay their debt repayments in due time.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Just received a inheritence check for 35,000, want ...
By: Moe | 20-07-2008
Just received a inheritence check for 35,000, want to know the best investment for it?
Ot a question about Personal Finance? Type your ...
By: belleteresa | 20-07-2008
ot a question about Personal Finance? Type your question here... can you put all your house payment towards the prinicpal?
Confuse father of two
By: Gabriel A. Griego | 20-07-2008
Got a question about personal finance? Type your question here...I currentlu have two mortgages where I bout a new house thinking that the old house will sell fast. I live in southern California adn that did not happen. Both current loans are negative arm loans where I am not even paying down the interest. The values of both homes are dropping every month. the current loan amount are about or slighltly above appraised value. What do i do!!!!
Financial__Assistance
By: choko209 | 20-07-2008
I__am__about__to__be__evicted__and__I__have__2__children.Is__there__a__way__that___I__can__still__save__up__and__move__somewhere__else__after__this?
Fdic COVERAGE FOR $100,000 +
By: aruph16 | 20-07-2008
should I split or move my 100000 + cd account to insure coverage from FDIC?
Day to day income
By: Andre BS | 20-07-2008
Sir, what should I do to get good income? Thank you
Q&A Powered by:
More from David Collins
Holidays on a Shoestring
By: David Collins | 22/07/2008 | Travel Tips
For many of us, with spiralling food prices and rising costs of bills, the last thing we can afford to think about is a holiday. However, with an abundance of late deals available to destinations at home and abroad, you can still potentially have an enjoyable holiday on a budget.
Car Hire in Florida: Stepping Away From Disney
By: David Collins | 22/07/2008 | Destinations
Every year, thousands of tourists of all ages flock to Florida to take in the sights and sounds of theme parks. There are also a variety of different sights to enjoy for those wanting to make the drive out of Orlando and take in some more of the Sunshine State.
Utilities - Energy Monitors
By: David Collins | 18/07/2008 | Tools and Equipment
Keeping an eye on your energy levels can be beneficial for the cost of your utilities – as well as saving you some money in the process.
One of the most popular appliances are units which will calculate the level of energy used by taking readings from your meter, and warning you when you’re using too much.
Loans - Tough Times
By: David Collins | 18/07/2008 | Loans
As banks struggle to find finances, they become more reluctant to lend to just anybody. As a result, many who apply for loans and mortgages find themselves with rather the stumbling block.
Utilities - Energy Saving Devices
By: David Collins | 16/07/2008 | DIY
For some, energy saving devices can be a godsend when it comes to the utility bills. There are now devices to help us all around the house - from adaptors that will time out and stop current if appliances have been left for a long time and even kettles that will boil exact amounts of water.
Students and Loans
By: David Collins | 16/07/2008 | Loans
Going to university is supposed to be a chance for young people to study hard, party harder and in the process gain skills and knowledge to help them further future careers. However, for many students, the financial implications can be tough to take. As levels of student debt have risen over the past few years, many find themselves with large debts at the end of their studies.
Life Insurance - Taking a Sipp
By: David Collins | 10/07/2008 | Insurance
From October, savers will have the opportunity to transfer final-salary pensions into what are known as SIPP schemes (Self-invested personal pension), rather than having to be held in life insurance policies.
Car Insurance - Road Rage Britain
By: David Collins | 09/07/2008 | Insurance
Despite the spiralling cost of fuel, car ownership has risen since 1988, and running costs for cars in general have shown to be cheaper than 20 years ago, according to a recent survey.
Finance 
