Homeowners Urged To Maintain Mortgage Payments
Britons have substantial concerns about their financial future, a new study shows.
In research carried out by thinkproperty, it was revealed that the vast majority of homeowners are worried about recent rises in the cost of living. Research from the firm revealed that 92 per cent of consumers are anxious about increasing food prices, with 85 per cent said to be apprehensive about how they will cope with surging fuel expenses. However, it seems that utility bills are the largest source of concern for Britons, as 95 per cent of homeowners are troubled by increases in the cost of gas and electricity bills.
Following on from such concerns about their ability to manage with rises in the cost of living, it may be possible people are developing difficulties in making payments on the likes of loans, credit and store cards, transport and utility bills.
Research from the firm also indicated that nearly 40 per cent of Britons are worried that the current economic climate means that successfully meeting demands for payment on either their mortgage or rent could be an area of concern over the remainder of this year.
Meanwhile, more than four-fifths of respondents claim to be worried that the credit crunch could have a negative impact on property prices in the months to come. Citing findings from the Ministry of Justice, thinkproperty showed repossession orders have risen by some 17 per cent from last year, while more than half of people questioned by the property resource believe that the government should offer assistance to those struggling to keep up with mortgage repayments.
Commenting on the figures, Mark Goddard, managing director of thinkproperty, reported it is crucial consumers keep up with mortgage payments. He said: “The bottom line is that homeowners need to be realistic with their finances during the next 12 months, which will be full of uncertainty and that could mean that house prices continue to fall. If they really cannot afford their mortgage, investigate the potential to sell, price realistically and either look to downsize, or rent a property, rather than risk repossession.”
He added that as “it is vital that homeowners keep up with their mortgage payments”, consumers worried about meeting this financial demand should consider cutbacks on areas of expenditure that are of lesser importance - such as holidays - and take steps to supplement their income.
People who hold concerns about their capacity to manage their money over the coming months may find that applying for a loan as a means of debt consolidation, borrowers may be able to meet various spending commitments at once, leaving them with a single low-cost repayment to make each month. Getting a loan may also be recommended after Nationwide’s most recent consumer confidence index showed that the optimism Britons hold in regards to their own personal finance situation and the economy as a whole deteriorated over the course of last month to stand at 61. This marks a fall from the 65 noted in May.
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