Homeowners 'on the rack'

Some borrowers spend three-quarters of take-home pay their mortgage

Homeowners can easily "bury their heads" when facing difficulties over mortgage repayments, a charity has warned.

"There is certainly worse to come," said Malcolm Hurlston, chairman of the Consumer Credit Counselling Service (CCCS).

"We warned in January that homeowners would be put 'on the rack' over the coming year," he said.

This was the case with self-employed van driver Andrew, who had to spend time away from work to support his mother after his father died.

This and some expensive repair bills for his van meant he missed some mortgage and council tax payments.

When he was £3,000 in arrears and facing a repossession hearing two weeks later, he sought help from the CCCS.

They helped him to prepare a budget, separating business and personal costs. He made a proposal at the hearing which was accepted by the lender and he kept his home.

The CCCS has been piloting a repossessions centre with 10 advisers since November.

Its advisers recommend to some people that they should sell their homes, rather than have them repossessed; these borrowers typically have three-quarters of their take-home pay committed to mortgage repayments.

Another homeowner who got into financial trouble was Kevin Allen.

He told BBC Breakfast that he found himself behind with repayments after being laid off from his job in administration and relying on temporary work.

"Another bill would come up which you would be paying on a credit card and you would have to pay the interest on the cards. All that adds up," he said.

He feared losing his home of 13 years until he went for a suspended repossession order.

He then had to pay his mortgage on time with extra interest on the arrears.