Consumers are finding it increasingly difficult to keep making the payments on their bad credit mortgages and keep up with their other bills. Recent studies have shown that consumers are defaulting on their bad credit mortgage payments in record numbers and the trend is expected to continue. The state of the economy is being blamed, as rising costs of living make the payments harder to achieve on a bad credit mortgage. Other problems are rising interest rates and a general inability to refinance a bad credit mortgage to get a better payment plan and lower interest rates.
‘People feel the bills mounting up and then they are falling behind with their mortgage. Often they do not face up to it until they are being taken to court. Sadly in about one in five cases we advise on, we have to tell people they will lose their home,” said Frances Walker of CCCS, a credit counseling agency.
Paul Mullins, chief executive at National Debtline, says “Attitudes have changed from a couple of years ago. The lenders know that, in the current market, they won’t get much for a property repossessed and then sold at auction.”
Related reading: Bad Credit Mortgages
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