Home » Finance » Loans

Consumers 'Struggling More With Making Mortgage Payments'

Oct 12, 2007
There has been a shift in the nature of Britain's debts, an industry expert has asserted.

According to Chris Tapp, deputy director of Credit Action, consumers have previously often struggled to make repayments on personal loans and other forms of unsecured borrowing. However, it was suggested that evermore people are beginning to experience difficulties in meeting demands for payments on mortgages. Since August 2006, the Bank of England's monetary policy committee (MPC) has increased the base rate of interest on five occasions.

Such moves, Mr Tapp states, have resulted in a "big knock-on effect" on Britons' capacity to successfully make regular contributions to mortgage costs. This in turn may well impact upon borrowers' abilities in meeting other constraints on their regular day-to-day spending, for example credit cards and personal loans. In addition, the deputy director asserted that the recent financial "turmoil" witnessed in global markets and with Northern Rock has helped to make mortgages a "very live issue".

Mr Tapp also reported that a number of financial advisory services have recently seen a rise in the numbers of people looking for help in managing mortgages, personal loan debt and other areas of their spending. He said: "Generally, across the board, people in the sector have seen an increase in people coming to us for advice and what's interesting about that is that the nature of that advice has changed slightly. Whereas previously most people were struggling with unsecured credits, so credit cards, loans, overdrafts, these kinds of things, there's been an increase in the number of people struggling with mortgage payments."

Marked house price growth over the last few years was also signified as a source of increasing debt difficulties for British consumers. Mr Tapp claimed that with property prices reaching record highs over recent months, those looking to get on to the housing ladder have been forced to borrow ever rising amounts of money. As a result, the director purported that this has seen "people borrowing in a way that's left them very little breathing space in terms of their monthly budget".

However, following the series of MPC rises since last summer, many people have been unable to cope with the resultant rise in financial pressures which could extend to their propensity to pay utility bills, overdrafts and other loans that they may have taken out. "When people are stretched with the amount they have to borrow, then it doesn't take very much to tip them into difficulty and I think that's what we've seen with people struggling with mortgages," Mr Tapp added.

Consumers who are worried about their ability to manage their finances in the wake of rising mortgage costs could be well advised to consider applying for a cheap personal loan to help them make repayments and reduce pressure on other demands on their spending.

Earlier this year, CreditExpert's managing director Jim Hodgkins advised those looking to get a low-rate loan to ensure that they have a copy of their financial history before making an application. He stated that a number of financial services providers have become stricter in issuing loans to borrowers as they look to ensure that applicants will be successful in making regular repayments. Mr Hodgkins suggested that more consumers could struggle to make mortgage payments in the next few months as the impact of MPC increases begins to take effect.
About the Author
Abbi Rouse writes for All About Loans where visitors can apply online for secured loans. We also specialise in bad credit loans, and debt consolidation loans.
Rating:
Please Rate:
(Average: Not rated)
Views: 138
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources