Mortgage Repayment: Default Rate 1 in 5 expected on fear

Yesterday, the US dollar went to a record low against Japanese Yen, which triggered a mayhem in the global stock markets. Today, the UK has come out with another interesting but dangerous observation. One out of five UK mortgage holders is concerned and worried about meeting their obligations to repay their mortgage loans in the next 1 year. This report was disclosed as per the FSA or the Financial Services Authority.
And interestingly, almost a quarter of those do not have any plans for dealing with the issue, the poll for the financial regulator found.

Already, the repossession of UK homes for mortgage defaults is at its highest since 1999.

However, the survey conducted by FSA was small, only around 570 people took part in that survey.

But it does give worrying indications about the citizens of the country, their concerns and fears about the mortgage markers. The consumer confidence is at the record bottom. The FSA is sufficiently concerned about the situation that it is launching a £2m advertising campaign and an advice guide for homeowners.

The FSA is concentrating its campaign on householders whose fixed-rate deals are coming to an end this year.
The FSA has published a new guide to help people manage their mortgage in preparation for some difficult times. The checklist provided in the guide suggests that people should check their budgets and consider seriously about how they would cope if their mortgage payments increased significantly. It also advises that homeowners start looking at their options well in advance of their current deal coming to a close.

For those already seriously struggling, it says that they should not panic but should talk to their lender and seek free, confidential advice from an independent debt advice agency.

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