Mortgage woes into 2009
The Council of Mortgage Lenders (CML) has warned the government that up to half a million households in the UK will struggle to pay their mortgages in 2009 and up to 75,000 will face some sort of mortgage default during the same period.
During 2008 over 200,000 people were reported as having some sort of difficulties meeting their mortgage payments whether this was defaults, missed payments or an enforced change to payment schedule.
The ownership of a home is one of the basic economic measures along with basics such as GDP and the ‘standard of living’ so this will not be what Gordon Brown wants to hear. The US has seen record breaking numbers of mortgage defaults and repossesions, and Gordon Brown has pledged Billion of UK tax payers money to bail out morgage borrowers.
The government was given these figures a few weeks ago, it remains to be seen what effect recent measures will have such as the drop in the lending rate and finance put in place for struggling borrowers.