The recent report by Credit Action said that average mortgage debt in the UK had risen to over £47,000.
Our people’s poll asked brokers how many clients they had seen with large debts, with over 80% of brokers having talked to at least one client struggling with debts.
One in five respondents said they had received between 1 and 3 enquiries from these clients in the past 3 months, with 22% dealing with 4-6 complaints, 27% talked to between 7 and 9 customers with debt problems and 13% helped more than 10 cases.
Just 18% said that they hadn’t dealt with a client struggling with their mortgage payments.
London and Country’s David Hollingworth told Mortgage Solutions: “While some people are finding mortgage payments have never been so low, for many it’s their major outgoing. With other costs like fuel and food rising, these budgets are being squeezed but people are trying their best to meet their monthly outgoings.
“Keeping a roof over people’s heads is a priority and people will try and rein spending in elsewhere, but we are definitely seeing that fluctuating costs are making it harder for people to budget.”
Michelle Highman, chief executive of Credit Action, said that brokers who were hearing from clients with debt problems should tell them to contact their lender.
“It’s no great surprise that people are struggling. We say people should talk to their lender and see if there’s anything that can be done to help.
“We’ve seen an improvement from lenders and there is definitely a will there to not take away people’s houses as long as the customer is engaging with them.”
