In the last year there have been 10,000 homes repossessed in the Greater Manchester area. This is a direct result of debt problems in Manchester people struggle with.
There are debt solutions which can help people in debt keep their house and resolve debt, like credit cards and overdrafts.
Repossessed Homes in Manchester
Repossessions occur when the mortgage repayments are not met on time. A secured debt, like a house is a priority expenditure and should be paid before unsecured debts like a credit card or overdraft.
The Council of Mortgage Lenders statistics reveal 7,700 properties were repossessed in the 2nd quarter of 2013 and that over 157,000 mortgages are in arrears too.
Repossessing a house is usually the last stage for a mortgage lender. The mortgage provider will often refer you to a charity to get debt help first, as long as they are aware of your financial problems.
If your property is repossessed and then sold, the mortgage will be repaid first, then the fees for repossession. If there is any money left you will be given this back. Should your property be in negative equity then any shortfall on the property will be passed onto you as an unsecured debt.
Contact Debt Support Trust if you would like debt help from a registered debt advice charity.
Manchester Bedroom Tax Debts
In Manchester, the bedroom tax is also impacting on people’s ability to live in rented accommodation too. The under occupancy tax on social housing means people are receive 14% less housing benefit for 1 extra room and 25% less for 2 extra bedrooms.
The shortfall in housing benefit for people claiming the state support means arrears are rising. Housing associations and social landlords are being forced to take action, including eviction.
The bedroom tax means debts continue to rise for people who can’t move property and don’t have the available income to pay the shortfall.
Property Debt Advice
Whether you live in a rented or mortgaged property, Debt Support Trust can help. We’ll assess your financial situation to understand what you can afford and provide a range of advice, tips and debt solutions.
You can receive support by telephoning 0800 085 0226 or completing our debt test below and asking for a call back.