Tenfold increase in mortgage debt

In an article featured in the Belfast Telegraph on Monday 28th February it was revealed that homeowners in Northern Ireland have seen mortgage debt increase tenfold over the past five years.  Figures provided to the Belfast Telegraph by Citizens Advice also showed that mortgages account for a fifth of all debt recorded in Northern Ireland.

Through its Dealing with Debt service Citizens Advice was able to show that one person in every 20 who contacts the specialist money advice service does so because they are struggling with mortgage debt.

Citizens Advice is concerned about these figures and believes that the situation is likely to get worse before it gets better particularly given rising inflation and the likelihood this year of an interest rate rise.  Citizens Advice believes that many people will be pushed into a debt situation if the Bank of England base rate rises and this could eventually lead to an increase in mortgage repossessions.

In the last nine months of 2010 the Dealing with Debt service dealt with total debts of £23.9 million of which £5.9 million (18%) was mortgage debt. 

To read the full text of the article featured in the Belfast Telegraph click here.