Housing charity experience rise in mortgage calls

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by Kay Murchie

Housing charity, Shelter, are currently experiencing a high level of calls from homeowners struggling to meet their mortgage repayments.

Shelter said homeowners wanting advice on how to deal with mortgage problems has increased from 10,000 to 80,000 over the last 12 months - a rise of 700%.

The news follows shortly after the Financial Services Authority (FSA) said one million families are at risk of losing their home over the next 18 months. Furthermore, the Bank of England announced this week that mortgage approvals were down to their lowest level for 13 years.

Shelter is urging mortgage lenders and the FSA to set up a free dedicated advice line. The statistics are an indication that a growing amount of people are at risk of having their homes repossessed and that the Government should set up a free advice service for people with mortgage arrears.

In addition, the charity wants a rescue package that would allow those who can no longer afford to buy their homes to be allowed to rent them instead.

Adam Sampson of Shelter said the Government, mortgage lenders and the FSA must take responsibility and start repairing the broken state safety net to ensure that, if people face difficulty, there is protection in place.

Many analysts believe the Bank of England will cut interest rates next week which may relieve the pressure slightly for some homeowners.