Business

Report reveals third of NI households in mortgage debt

  • 27 January 2012
  • From the section Business
Mortgage application form
Image caption The report looked at mortgages over a three year period

About a third of Northern Ireland householders who took out mortgages between 2005 and 2010 are having payment problems, according to a report.

A fifth of house owners in the UK are experiencing the same problem.

The debt charity, the Consumer Credit Counselling Service, said households in Northern Ireland are among the most financially vulnerable in the UK.

It said a third have little money left at the end of the month.

Delroy Corinaldi from the service said: "The vulnerability of many Northern Ireland households to financial shocks in the future means that personal debt problems in the region could increase dramatically."

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The report said in recent years, Northern Ireland had seen the fastest growth in demand for debt advice in the UK, with the number of people counselled rising by 80% in the two years to 2010.

The report also concluded that households in Northern Ireland were particularly vulnerable to future financial shocks.

Only 29% of people in Northern Ireland have a savings account and only 15% have an ISA - the lowest proportions of any region in the UK.

It said Northern Ireland households had barely any cushion against unforeseen financial events, with the average household estimated to spend as much as 97% of their weekly income - the highest spending ratio in the UK.

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