Citizens Advice has reported that 25,360 people sought mortgage advice between April and June this year, and the number can only escalate, said Residential Property Solutions.
Mortgage brokers should take notice of the facts and not be lulled into a false sense of security by forecasts, warned the sale and rent back firm.
The CML downgraded its repo forecast by 14,000, from 53,000 to 39,000 and lowered its projected arrears figures from 205,000 to 175,000 for mortgages which are 2.5% or more in arrears.
Pete Thomson, managing director of Residential Property Solutions, said: “I hope the CML’s revised forecasts are correct, but there is strong evidence which suggest that their dreams may not come true.”
“Lender forbearance has, in many instances, simply delayed the inevitable and public sector job cuts are going to put a huge strain on the finances of thousands of homeowners,” he said.
Eventual interest rate rises are likely to bring “payment shocks” and for many this will be the “straw that breaks the camel’s back”, he said.
