New figures emerged last week that showed that four houses were being repossessed in the UK every single minute, as more and more customers fall into mortgage arrears amid economic uncertainty and high redundancies.
According to the figures published by Credit Action, mortgage lenders repossessed one home every 14.6 seconds over the period of their research, with that figure only not higher because interest rates are so low, meaning mortgages are currently as affordable as they have ever been.
Credit Action's research showed that there are 154 mortgage possession orders granted each day, along with 197 mortgage possession claims.
With nearly 1,650 people being made redundant each and every day, it is no surprise that more and more people are starting to find paying their mortgage is a bigger and bigger struggle each month.
If you are unfortunate enough to be in a situation where you are starting to find it hard to pay your mortgage each month, then speaking to your lender is your best solution, as many lenders have specialist teams in place to help reduce payments, or offer payment holidays to help customers find a way back on their feet.
For those already behind on their repayments, and significantly in debt, there could be another solution. Customers who are over £15,000 in debt to at least two different creditors are able to take advantage of an IVA, which will allow them to have the interest on their debts frozen at 0%, and to make affordable repayments over a five year period.
At the end of the five years, any outstanding debts will be wiped clear, and customers can keep their home throughout the process, unlike bankruptcy would.
Whilst 75% of creditors must agree to an IVA for it to be granted, many accept that bankruptcy is an inevitable alternative solution, and would rather see some return on their investment, as they would through an IVA.
Whilst more lenient lenders has seen repossessions drop by 7% compared with the first three months of the year, the number of repossessions is still high, and it's important to act now if you feel you are struggling to keep up your repayments.