In the year ending 31^st August 2011 we at advice4debtNI recorded £3.6M of mortgage debt compared to the £700,000 identified in the 12 months to 31^st August 2010. 

It should be stated that these statistics would have been affected to some degree by the continued emergence of the helpline-based debt advice service throughout that period, however the size of the increase (circa 500%) reinforces the belief that mortgage debt is a very big problem for Northern Ireland.

While customers continue to struggle financially as the current economic conditions continue to bite, more and more frequently we are seeing cases of individuals being unable to afford their homes, having to sell them at a loss and looking at options in dealing with the shortfall that follows.  As inflationary pressures persist, and should interest rates rise, this will create more problems for homeowners.

What can be done?

Negative equity in a house is only an issue when you are looking to sell or should it go through repossession, i.e. when it crystallises, so if you are in negative equity but can afford your repayments, continually paying down the capital portion of the mortgage, alongside the interaction with any house price increases, will hopefully help to turn the situation around.

For those who are having trouble with their mortgage currently, at advice4debtNI we can provide free debt advice looking at your current situation with your mortgage and providing advice on how you can attempt to avoid repossession should you already be in arrears. 

We can also give you pro-active advice on how to structure your household expenditure to ensure you can meet the repayments on your mortgage.  It is important to note that payments to credit cards and unsecured loans, although important, are not as high a priority as maintaining the roof over your head. 

As well as providing you with information on the above, we can advise on approaching your lender should things become unmanageable, giving you an idea, after looking at your financial situation, of what may help you the most – perhaps moving to interest only for a period, or asking them to extend the term of your mortgage, thus reducing the monthly payments.  Additionally we can give advice on repossession proceedings, as well as dealing with any shortfall which results from a sale/repossession.

Advice4debtNI are a free, confidential, independent telephone based debt advice service for residents of Northern Ireland and are funded by the Department of Enterprise, Trade and Investment.  The helpline number is 0800 917 4607.