CAB sees spike in mortgage debt

Citizens’ Advice has highlighted that the cases of mortgage debt it has dealt with has risen by 64 per cent in the past year.

The registered charity revealed the significant increase over the past 12 months alone, perhaps, in part, due to the large increase in unemployment numbers which were released last week.

One man from Belfast told the BBC about the ordeal he went through as he now faces repossession.

He explained that, after ending up with three loans on top of his mortgage, he owed between £98,000 and £100,000.

Back when property prices were booming, the Belfast man’s home was valued at £220,000 and his full-time employment as a taxi driver meant that he could cope with the repayments. He said, “The mortgage seemed to be all right and then I had problems.

“My marriage broke-up, I ended up with mental health problems. I had to stay in hospitals.”

He continued: “At the moment, I’m in arrears on my mortgage by about £1,400. On my other loans, I have arrears of between £1,500 or £1,600.”

The unnamed man now reportedly risks losing his home for less than the value of his mortgage. “Around about April the repossession order was in the courts. Just last week I got another phone call saying that the house will be repossessed within three or four weeks,” he said.

Categories; Housing Debt and Bills, Current UK Economy, Debt Management and Banking,