Mortgages: Millions 'Struggle With Payments'

grizzly1911

Mr._Pricklepants wrote: »

Mortgages in arrear, table 1: 157K

http://www.cml.org.uk/cml/publications/marketcommentary

It depends how arrears are classified and how many have been "repackaged" under some form of forbearance and kept out of the definition.

This far into "recession" it wouldn't surprise me if numbers in arrears were falling as the books get cleared out. Future increases will force the figures up again.

More stats

• There were 35,900 new arrears cases in Q3. This was an increase of 4% on last quarter and of 3% on Q3 last year (para 14).
• Although the total number of accounts in arrears at the end of the quarter rose in Q3, up 2% to 303,200, this was 7% less than the 324,300 accounts in Q3 2011 (para 15).
• The proportion of the residential loan book that is in arrears, and hence not fully performing, was little changed from last quarter, at 2.46% in Q3 compared to 2.45% in Q2 (para 18).
• Arrears totalling £27m on 7,644 accounts were capitalised in Q3 (para 22).
• The number of new possessions in the quarter fell by 2% to 8,521 (para 23).

http://www.fsa.gov.uk/library/other_publications/statistics

coastline

Mr._Pricklepants wrote: »

Mortgages in arrear, table 1: 157K

http://www.cml.org.uk/cml/publications/marketcommentary

Theres a basic difference in the two calculations...
The CML estimates there are 157k in arrears by more than 2.5%
On a 100k mortgage that would be more than £2.5k in arrears...
This will be at least 6 months in arrears...

The article in the OP suggests many more...which could be a few hundred pounds or a few months behind...again this will be under 2.5% of the balance..

Mr._Pricklepants

coastline wrote: »

Theres a basic difference in the two calculations...
The CML estimates there are 157k in arrears by more than 2.5%
On a 100k mortgage that would be more than £2.5k in arrears...
This will be at least 6 months in arrears...

The article in the OP suggests many more...which could be a few hundred pounds or a few months behind...again this will be under 2.5% of the balance..

Good point.
The problem is we don't know Shelter's methodology, therefore it's difficult to determine.

RevolvingDoor

Mozette wrote: »

I used to cope with much higher mortgage payments - it's the rise in my other bills coupled with a cut in my pay that is a struggle. Glad the mortgage rate is low!

Yes, our mortgage rates have fallen and my DH is lucky in that his wages have been going up over the years but it's the cost of everything else that has increased. My friend emigrated about 10 years ago and was shocked when she saw how much the prices have increased when she came back for a visit.

wymondham

RevolvingDoor wrote: »

My friend emigrated about 10 years ago and was shocked when she saw how much the prices have increased when she came back for a visit.

I feel the same on a weekly basis when going shopping - it's not that gradual a rise anymore..... ;-(

Carlos77

Surely there are a lot of people who kept the payments the same when the rates dropped, so there are prob as many over paying as in arrears. God help those struggling once the rates go back up

RevolvingDoor

Carlos77 wrote: »

Surely there are a lot of people who kept the payments the same when the rates dropped, so there are prob as many over paying as in arrears. God help those struggling once the rates go back up

My sister-in-law was telling me how good it was that her payments have gone down, I told her she should take advantage and pay off a bit more or pay back her debts while the rates are low but she just uses it as extra spending money. :doh:

PaulF81

IveSeenTheLight wrote: »

The thing is, should rates rise, what could you cut in order to budget accordingly?

My monthly donations to charity.

PaulF81

wymondham wrote: »

I feel the same on a weekly basis when going shopping - it's not that gradual a rise anymore..... ;-(

It's much worse in the USA, especially consumer electronics. Most things (bar apple products) are cheaper now in he uk than the us.

IveSeenTheLight

grizzly1911 wrote: »

Yet more to be sucked out of discretionary consumption when it does occur, for those that can.

Like all these things it just piles up the pressure on those already trimmed to the bone on expenditure. The relief in interest rates, if they have been able to take them up, is being eaten into by energy/food costs.

In time of adversity, it's often valuable to reflect on the past and evaluate if things really are as bad as it seems.

I only have to go back to my own childhood and reflect that my children as far better off than I was.
I then consider what life was like for my parents, grandparents and even great grand parents.

Life may be hard but I would suggest for the majority it's not that bad in comparison.