Credit crunch hits more wealthy (From Bradford Telegraph and Argus)

Credit crunch hits more wealthy

3:26pm Thursday 22nd May 2008 in

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More householders and tenants from affluent areas of the district face losing their homes because they cannot afford to pay the mortgage or rent.

A Bradford and Keighley legal advice charity is seeing a dramatic rise in the number of people facing repossession and eviction, including more from affluent areas such as Skipton and North Yorkshire.

Sikander Hussain, who runs Key House, a housing charity based in North Street, Keighley, said the number of cases had risen by more than 25 per cent so far this year and could double by the end of 2008 as the credit crunch continued to bite.

The big rise in demand for Key House's support is stretching its resources The charity usually handles about 100 cases a year in the Keighley area but Mr Hussain expects this to at least double by the end of the year. Across North Yorkshire he expected the annual caseload of 500 to also rise sharply.

Key House provides free legal advice to people attending court for repossession or eviction hearings. It represents householders and tenants in court and also tries to stave off repossession by advising them on reaching an arrangement with their lender or landlord.

Mr Hussain said: "Our duty advice schemes at North and West Yorkshire county courts have advisers on hand who can assist and if needed go into the court with anyone facing loss of their home."

He said many people struggling to pay mortgages or rent did not acknowledge that they had a serious problem.

He said: "People get into difficulty for all sorts of reasons, however there is a growing trend of those who have re-mortgaged as property values increased. These people now find themselves in difficulty and are faced with the loss of their home.

"The credit crunch is not just affecting people on low incomes but also those in more affluent areas.

"We are seeing more people seeking help from such areas.

"One couple had an original loan of £15,000 which was almost paid off when they took out a further loan of £70,000. They now have debts of more than £100,000, which they cannot repay."

Key House recently merged with HARP, a North Yorkshire-based housing support organisation, and now takes on cases from as far afield as York and Scarborough, The combined charity provides advice in an area including five county courts.

Key House has extended its housing service to include debt and welfare benefits advice and can be contacted on (01535) 211311.

Tanya Jackson, spokesman for Bradford-based Yorkshire Building Society, said the lender had seen a small rise in mortgage arrears this year.

She advised anyone facing repayment problem to contact their lender as soon as possible.

YBS is writing to borrowers whose fixed-rate mortgages are due to end in the next 12 months to help them prepare for a jump in monthly payments.

The society is also guaranteeing existing borrowers coming off fixed-rate new mortgage deals to help smooth the transition from lower payments.