Citizens Advice Scotland has seen a huge increase in those looking for help as they struggle to keep up with mortgage repayments.
According to the charity views of the ‘what to do if you can’t pay your mortgage’ page on its website have risen by 1,627% from June 2021 to June 2022.
At the same time direct advice on mortgage arrears is up 10% from June to July 2022, and up 24% from 2021/22 to July 2022.
Around 200,000 Scots have a variable mortgage which track the Bank of England base while 100,000 are locked into fixed-rate mortgage deals which scheduled to end during 2022. An estimated 180,000 more will expire next year.
Aoife Deery, CAS social justice senior policy officer, said: “We are seeing soaring demand online and across the CAB network from people struggling to pay their mortgage.
“This has been a growing problem for a while, with steady incremental increases in demand over the past year.
“The increase in interest rates last week coupled with the general impact of rising inflation risks supercharging this problem and we anticipate starting to see large groups of people unable to pay their mortgage.
“That can be a really scary prospect and people who are struggling with money should understand they aren’t on their own – the Citizens Advice network is here to help.
“Lenders legally have to treat you fairly and consider any request you make to change the way you pay your mortgage.
“They are expected to do everything they can to come to a payment arrangement and repossessing your home should be the last resort.”
