It was in the news today that 1.8 million people can’t afford to pay their mortgage. The article claims that this is worse than the situation was in 1992 when as many as 1.6 million people were caught in difficulty. However, one thing to note is there are 2 million more mortgages now then back then.

It’s surprising that people haven’t taken learning’s from the economic crisis we had between 1989 and 1992, when interest rates were up to 15%. Astonishingly, nearly four-fifths of homeowners have no insurance to pay off their mortgage if they were made redundant.

The problem has arisen as mortgage lenders began to offer mortgage deals that were 3 or 4 times a person’s salary. When you combine this with extortionate fuel prices and rising food bills many of us are falling into difficulty. If you find you are falling into financial difficulty check out this information provided by the Citizens Advice Bureau

Related posts:

1. UK Property News July 15 2008
2. UK Property News July 02 2008
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4. Worried about house repossession?
5. Higher deposits needed for mortgages