Surge in repossession advice sought from charity amid mortgage crisis

The mortgage crisis is leading homeowners to seek advice on repossession, a charity has found.

Citizens Advice Scotland said data shows views of its online advice page for those who are facing eviction because their home is being repossessed have risen 341% since May 2022.

Views of the online mortgage calculator increased more than 20 fold in the same period while pages providing advice for those who are homeless, or at risk of homelessness attracted its highest ever number of views last month, and was up by 30% from May 2022.

Data from the charity’s Advice for Scotland website for last month indicates views of a page giving advice around a lender trying to repossess a home have hit a record high, up 103% since May 2022.

This week the Bank of England increased interest rates to 5%, the highest rate in 15 years and the 13th consecutive rate rise since December 2021.

Figures released last week found the average two year fixed mortgage was now above 6%.

Citizens Advice Scotland social justice spokesperson, David Hilferty, said: “The cost-of-living crisis has seen the Bank of England hike interest rates to try and cool the economy – and that has led to lots of people on variable rate mortgages facing higher monthly payments.

“Meanwhile, lots of people with fixed rate deals that will expire soon are understandably concerned about how much more they could pay and trying to budget for different payments.

“On that basis we are seeing a surge in demand for our online mortgage calculator, as well as other aspects of housing advice.

“Pages offering advice to people facing homelessness, repossession actions from their lenders, or eviction from their home once it has been repossessed have all seen big increases.

“People facing an increase in their monthly mortgage costs are also seeing high costs elsewhere, whether that is their energy bills, food shop or transport costs.

“None of this is happening in a vacuum; many people will prioritise paying their mortgage but increasing demand for advice around repossessions and evictions is really concerning.

“Lots of people, through no fault of their own, have fallen into debt to simply keep up with essential bills like food, shelter, and energy.

“People taking on new debt on these circumstances could see that line of credit cost even more. It becomes a vicious cycle, trapping people in rising debt.”

He urged anyone with concerns to seek help from the charity, stressing that the advice is free, impartial and confidential.