EQUIFAX AND SHELTER CYMRU PROVIDE VALUABLE ADVICE TO WELSH HOMEOWNERS AT RISK OF PROPERTY REPOSSESSION
London 4th December 2007 – Latest figures reveal repossessions have continued to rise in Wales*. It is predicted that the Bank of England will make two rate cuts in 2008, which is good news for homeowners. But the credit crunch with tighter lending criteria being imposed, as well as five interest rate rises in the last 15 months, has led Equifax, the leading instant online credit reference agency, to warn homeowners they may still be at risk. The company has therefore joined forces with housing aid and homelessness charity Shelter Cymru to provide valuable advice and support to those experiencing serious money problems. Equifax is offering consumers who use Shelter Cymru’s advice services, free access to their credit file. The client must request their credit file from Equifax themselves, which they can do using a request form and a supporting letter from Shelter Cymru. This will provide consumers with their statutory credit report in the post within 7 days of the request.
Recent research undertaken by Shelter Cymru, due to be published in early 2008, has revealed that many people do not understand the possible consequences of borrowing and repayments when they apply for mortgages. Nor do they get enough advice and assistance to help them assess the risks of losing their home. The research was undertaken in response to the rapidly increasing level of mortgage actions and repossessions in Wales over the past two years and an increase in the charity’s own work with people in mortgage arrears.
With over 8,000 claims made for property repossession by lenders in Wales last year, it could be assumed that the most vulnerable in society, those with poor credit records and temporary jobs, are the ones most at risk of losing their home to repossession. However, with a Equifax survey revealing that 20%** of respondents say they would not be able to survive for more than a month if they lost their job, the risk of repossession isn’t just a threat for the most vulnerable.
Shelter Cymru has revealed that the number of people coming to their advice services with mortgage debt has almost trebled over the last three years. “During the last twelve months alone we have assisted almost 600 households facing mortgage difficulties”, claims John Puzey, Director, Shelter Cymru. “Worryingly, over 70% of those people were already facing possession action before they sought advice”.
The Equifax survey also revealed that 38% of consumers in Wales have re-mortgaged their home to pay off existing debt. But, according to Equifax External Affairs Director, Neil Munroe, this is a big risk, because failure to pay could lead to them losing their home. “Individuals who remortgage to deal with increasing costs and debt are running a high risk. A bout of bad luck such as illness, the loss of a job or a relationship breakdown could mean they would be unable to meet mortgage repayments and be suddenly faced with the prospect of losing their home. Indeed, our recent survey seems to suggest that many people are only two pay cheques away from a financial problem.”
In order to address the problem of repossessions, Shelter Cymru is urging people to get in touch with their lender and not hide from the problem. They should explain why they are having difficulties and in many cases the lender will work with the individual to agree a new programme of repayments. The Charity is also advising people in arrears or facing legal action to get independent help. Shelter Cymru itself operates a free, expert and confidential advice service across Wales.
John Puzey, Director, Shelter Cymru comments: “Our research proposes a number of recommendations, information and advice is crucial but clearly the underlying issue continues to be lack of affordable housing options. With increasing house prices in Wales, people are borrowing ever-increasing sums of money simply to get onto the property ladder. For example 40% of young working families cannot afford the cheapest houses in Wales. That’s what is forcing some people to seek high interest mortgages from the sub-prime lending market which accounts for many of the repossession actions we have seen. We do see people without permanent jobs or who are in massive debt still being offered more credit. Secondly, there needs to be more affordable options for people, such as low cost ownership schemes and social rented housing.”
END
*The Press Association
** Equifax survey of 1463 consumers May 2006
If you would like more information or would like to arrange an interview with Neil Munroe please contact Claire Foster, Elinor Puzey or Louise Fowler at HSL on 020 8977 9132 or email claire@harrisonsadler.com
About Equifax
Equifax Inc. is a global leader in information technology that enables and secures global commerce with consumers and businesses. We are one of the largest sources of consumer and commercial data. Utilizing our databases, advanced analytics and proprietary enabling technology, we provide real-time answers for our customers. This innovative ability to transform information into intelligence is valued by customers across a wide range of industries and markets. Headquartered in Atlanta, Georgia, Equifax employs approximately 4,600 people in 13 countries throughout North America, Latin America and Europe. Equifax was founded 107 years ago, and today is a member of Standard & Poor’s (S&P) 500® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX.
Equifax. Information That Empowers.
Shelter Cymru Notes to Editors
Contact for interviews in English or Welsh - Michelle W 01792 483072/
07971 828490 or michellew@sheltercymru.org.uk
For a full list of Shelter Cymru advice surgeries and times visit www.sheltercymru.org.uk
