The Financial Services Authority has announced today that one in five people are worried about making mortgage payments in 2008. Many 100% mortgages deals and borrowers whose fixed rates will be coming to an end this year will be extremely concerned what their new payment will be.  

The FSA is so concerend that they will be launching a £2m advertising campaign. Northern Rock is only offering 100% mortgage borrowers the standard variable rate when borrowers fixed rates expire. Other lenders have not passed on all the rate reductions as they are struggling to make profits.

“Economic conditions are getting tougher, putting pressure on family finances,” said Chris Pond, FSA director of financial capability. fsa.gov.uk 

The poll of 2,011 people aged over 16, of whom 573 were mortgage holders, found that 19% of those asked were concerned about meeting the cost of their mortgage repayments.

Last month, the Council of Mortgage Lenders (CML) cml.org.uk/cml/statistics said repossessions rose by 21% in 2007 to 27,100 homes, the highest figure since 1999, which reached over 70,000.

Many 100% mortgage borrowers and people who’s fixed rate is coming to end would be wise to start shopping around and talking to a mortgage broker. If they are gtting into any difficulty they should talk to their lender as soon as possible, or contact a  free independent debt advice service.

For a long time there have been calls for free advice funded by levies from companies regulated by the Financial Services Authority. More so now with Bad credit mortgages and 100% mortgages being a regular topic in the news due to the current changes in the world economy.  

A report conducted on by Thoresen Review of Generic Financial Advice, commissioned by the government, suggests a £12m two-year pilot project.

It said a telephone; internet and face-to-face advice service should be funded by the government and by levies from the financial services industry. 

Otto Thoresen, the head of the financial services firm Aegon, was asked by the Treasury to design a national money guidance service. His review suggested that people would use such a sales-free service for significant life events that affect finances, such as starting work, buying a house, having a baby, divorce or retirement.

Many first time buyer mortgages now require a deposit of between 5 and 10%. Some lenders are insisting more stringent credit checks. A minor change in your credit report in the wrong direction like a late or missed payment on your credit card is likely to see you declined for any of the best mortgages available.

The Citizens Advice Bureau has gone on record saying there service is busting at seams. Good quality debt advice should be available to everyone.