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Demand for mortgage help grows

More people are seeking help with their mortgage repayments, according to Citizens' Advice.

The charity said that calls about home loans during the first two months of the year shot up by 35 per cent compared to the same period last year.

It seems the effects of the credit crunch, which have pushed up the cost of repayments and tightened lending criteria, are beginning to take hold.

"It is a worrying trend that our bureaux are reporting a very sharp increase in the number of mortgage arrears problems they are dealing with," said Teresa Perchard, director of policy for Citizens Advice.

"These latest figures paint a worrying picture, suggesting a significant number of households are struggling to meet their most basic living costs.

"The combination of big increases in household bills, especially fuel, and rising housing costs is putting additional pressure on people’s finances when they are already stretched to the limit," she added.

The Financial Services Authority says 1.4 million homeowners will come off fixed rate deals this year, leaving many facing sharp rises in their mortgage repayments.

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