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UK mortgage borrowers concerned about debt

Posted 2nd December 2009.

Carried out by fund manager Janus Capital, the survey found that 35 per cent of Brits think their borrowings are too high in comparison to their income, compared to 30 per cent across the whole of Europe.

According to the Independent, while some mortgage lenders believe that bad debt is slowing down, others such as Lloyds Banking Group have claimed that it has peaked, with low interest rates on home loans the only obstacle to defaults.

Ric van Weelden, co-chief executive of Janus Capital International, told the newspaper: "Faced with an overwhelmingly low interest rate environment throughout Europe, incentives to save are low and evidence that borrowings remain far too high relative to income is disturbing."

Consumer watchdog Which? recently said that the Financial Services Authority’s decision to fine mortgage lender GMAC for its treatment of customers in arrears should have been done before they got into debt.

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