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Middle-class fear they won't be able to pay the mortgage
Nicholas Cecil, Chief Political Correspondent30.12.08
TWO out of five middle-class professionals fear they will struggle to pay their mortgage next year, a poll reveals today.
The poll also showed that high earners are the most worried that they will default on their mortgage payments.
The findings highlight how the economic downturn has hit the City, retailers and manufacturing but is now predicted increasingly to affect other professions such as law and accountancy, marketing and advertising agencies and public relations companies.
The YouGov survey for a report by the Conservatives on the housing market found that 42 per cent of middle-class professionals were concerned about not being able to pay their mortgage next year, compared with 46 per cent of blue collar workers. Of the higher earners, 15 per cent said they were "very worried" about not being able to meet their repayments, compared with 12 per cent for other social groups.
Shadow housing minister Grant Shapps stressed that the recession was having an impact across all sections of society. He said: "Householders up and down the country and in every kind of housing are now concerned, as never before, about their ability to maintain a roof over their heads. While Gordon Brown would like us to believe that the Government has fixed the roof when the sun was shining, it's now becoming clear that for many hard-working families concern about keeping their home is greater than at any time before."
The Council of Mortgage Lenders is predicting that repossessions will double to 75,000 next year and yesterday the Chartered Institute of Personnel and Development warned that more than 3,300 jobs are set to be lost a day in the first three months of next year.
It is forecasting that unemployment will rise by at least 600,000 next year, with half of this increase happening before Easter. Ministers are working with lenders on schemes to help people keep their home if they suffer a short-term loss of work, although this is unlikely to be of benefit to many people in London because of limits on the size of mortgages.
Consumer affairs minister Gareth Thomas urged individuals facing financial difficulties to act quickly. He said: "It is imperative that when people are struggling with debt they seek assistance as soon as possible. There are a wide range of organisations who provide expert advice and can really make a difference."
He said the number of people contacting the National Debtline soared by 40 per cent in November to 23,000 compared with the same month last year.
Meanwhile, Britain's householders repaid £5.7 billion of home loans in the three months to September as they sought to reduce their debt, according to new figures.
The International Monetary Fund has raised doubts over the value of Gordon Brown's 2.5 per cent cut in VAT. It said: "It is questionable whether decreases in the VAT of just a few percentage points are salient enough to lead consumers to shift the timing of their purchases."
Reader views (35)
"The poll also showed that high earners are the most worried that they will default on their mortgage payments."
And whose fault is this? They, unlike those on average earnings, were the ones who had the choice of overpaying their mortgages when times were better. Any number of newspaper financial columnists have pointed out that paying an extra £1000 off your mortgage now will save you several times this in interest and shorten your term. So what did these high earning (and presumably more intelligent?) folk do: increase their mortgages to finance a lifestyle they couldn't afford. Gordon Brown to blame? What happened to Conservative belief in individual responsibility?
- Tonyb, Melbourne, Australia
Little sympathy from me. You reap what you sow. They had to have it all - now they risk losing it all. Hope it was worth it. Though I doubt this recession will teach them anything - as soon as it's over, they'll go back to being rampant consumerists. Yeah, because that's what's so important in life. You value systems must change. Back to basics.
Jacqueline from Hampstead - do you live in the real world? Your blaming Gordon Brown for everything is getting boring, not to mention erroneous. Go back to your ivory Hampstead tower and spare the rest of us from your comments please.
- Ms, London
Fools would vote for Brown again.
- Jacqueline, Hampstead, London
The PM's name is Gordon Brown not flash or crash or stash or anything stupid. He and Tony Blair were elected 3 times and the last 10 years has given the country new hope. he will deal with the world recession and will vote for him against the immature and inexperienced Cameron whenever the election is called
- Keith Price, Luton, England
Crash Gordon and his "Brown wonder team" have failed and should go. They were and will never elected and they should face the consequences for their terrible failings.
- Georgie, Islington, London
Trunk US: Totally agree, if they lived within thier means instead of trying to outdo the neighbours. My heart bleeds for them, they will also have to make do with one car per household instead of one per family member.
- Triffidqueen, Desk in London
as sylvia so succintly posted 'Don't vote for any of these parties. First Labour, then Conservative, then Labour again, and so on. We deserve better. Vote for a party that would pull out of the EU, stop all further immigration, bring our boys home and never get involved in foreign wars'. I am sure we all know which British party she is referring to...and if my conversations with many of my freinds and colleagues are accurate - the main 3 parties are in for one huge rude awakening when election time rolls around. The worm is turning.....
- Gary, amersham
i agree with tonto.so so glad ive left the u.k.It has cost me an arm and a leg to get here and i have to say its paradise.I feel sorry for all the decent people stuck there.If i was you i would get out now while you
still can.The England i grew up in has gone forever.
- Darren, new zealand
Keith -Delusional from Luton says that Vauxhall "went to the wall under the Tories"
Yet Wikipedia says
In 2000, Vauxhall announced the end of car production in Luton; the plant closed in March 2002
So Keith would that be the tories still in power from their 1997 election victory?
That's either a deliberate lie (Hello Gordon!) or you really do think Tories are all knowing, all powerful and ever present constantly in office.
I think we all need to be told' are you bad or merely deluded? (Hello Gordon again!).
Meanwhile in the real world we need freedom from your Nu Liars. Lets have an election!
- Ethan Edwards, UK
Tonto , u r spot on , this country is falling apart under the massive burden on the few taxpayers paying to prop up the benefit system and extortianate public service pvt industries, there has to be radical moves to lower the burden on this countries taxpayers before they to become claiments.
- Brian, Wiltshire
Re. Credit crunch
When Northern Rock went bust and (for purely politicak reasons) was underwritten/partially nationalised by the Government, a far more practical appoach would have been as follows:
Instead of bailing out the banks, it would have been far better to help to homeowners and ensure that they can meet their respective debt repayments.
Combined with tax reductions against income tax and paying the interest only, the homeowners as well as the banks would not be in such a bad situation now.
Darling in his infinite wisdom, however, preferred to chuck vast amounts to the banks with no strings attached (in order to pay themselves "bonuses"....). It appears that the Governmenrt is NOT interested in mantaining the last asset base left in the UK, but to carry out the "intsructions" of a few big Fat Cats.
- Weddigen, London
Vauxhall Motors went to the wall under the Tories.
- Keith Price, Luton, England
A more sensible approach to borrowing and expectations in Italy has meant that the crisis hasn't (yet) had the impact it has had in Britain. The crisis in UK is a major talking point here.
- Mark Wright, Milan, Italy
I got out with my family just in time. London and the rest of the UK is pretty much rubbish when you actually get out and see the world. I lived in the UK for 30 years and I can finally understand what the problem with it is. It's a third world country masquerading as a developed nation. Everything is close to breaking point. I gave 12 years of hard graft and paid tax at the higher rate until I could take it no more. I now work 35 hours a week instead of 60, I live in a huge house with a swimming pool overlooking the beach and I spend weekends out on my boat with my family. Anyone with any sense would get out of Britain and leave it to rot away in it's own filth!
- Tonto Of Brisbane, Australia
Roger, London Excellent point, Perhap's Mervyn of Canvey ( A Labour Stronhold ) would like to put into this column exactly what labour has given this country since being in power. I want to read facts not spin or damned lias.
- Ebin Donk, Angus Scotland
Melvyn, you will find that Conservatives inherited the high interest rates for Thatcher to fix them, just like Cameron will inherit the mess from Crash Gordon. Anyhow they are the economic and financial specialists let them do their best. We are in serious trouble here, Britain is in the worst situation of the big countries!!
- Jacqueline, Hampstead, London
Keith in Luton is priceless. How's Vauxhall Motors doing Keith?
- Frederick, London UK
Although questionable whether current Labour or earlier Tory administrations should shoulder most of the blame, it is undoubtedly the obsession with property ownership at the forefront of the national psyche that is the chief culprit. Losing sight of what constitutes true value in property(and the professional bodies like R.I.C.S. are equally guilty) has resulted in individuals becoming hugely over-borrowed given the current circumstances. Eventually, equilibrium will return,the casualty count likely to be a good deal higher than in the early nineties.
- Mikey, Tring UK
I seem to have kicked over a hornets nest with my earlier comment re buying property and expecting it to only rise in value. Well the fact is we have a free market economy and anything is only worth what you can sell it for be it a scond hand car or a house.
I notice no credit is being given to Team GB for the fact that we now have the lowest interest rates we have had for many years. imagine what it would be like if we returned to the 15-18% rates the tories had?
As for Boris being a "Breath of fresh air" I should avoid anywhere along Route 38 where 47 Mercedes-Benz artics will be replaced by 72 double deck buses. Oddly it used to only need 50 Routemaster buses. Just goes to show how sucessful Ken was at getting people onto what are the best buses London has ever had and which are operated successfully accross Europe.
The tories talk about cutting expenditure yet wont supply any details of what they would cut.
In London, Boris cut vital transport upgrades like the Thames Gateway Bridge and is now talking of a new bridge near Greenwich I reckon he must just make things up as he goes along given that he has'nt the faintest idea of how to run anything let alone a world city like London.
- Melvyn Windebank, Canvey Island, Essex
Don't vote for any of these parties. First Labour, then Conservative, then Labour again, and so on. We deserve better. Vote for a party that would pull out of the EU, stop all further immigration, bring our boys home and never get involved in foreign wars. We need a party that loves this country and everything it used to be. And that rules out this lot.
- Sylvia Howard, Essex
Melvyn Windebank - Just how many year's does Labour have to be in power before anything becomes their fault? For the last 11 years all that Labour and it's supports have done is blame the last government! During this time Labour has had direct control over around £3,000,000,000,000 of spending - maybe it could have done something usefull with it!!!
- Roger, London
Maybe they shouldn't have bought that new big house after all?
- Trunk, US
Mr.Windebank seems to want to blame the tories for all the ills of this country even though Mr.Blair and Mr.Brown, his saviours, have been in power for over 10 years. It always surprises me that people like him cannot admit that the ailments Britain is facing are down to labour policies over the last 10 plus years and nothing to do with long gone tory policy. I agree that social housing should have been continued but labour had the oportunity to do something about this many times but have failed to act. When will labour supporters face facts and stop blaming the tories for all the problems we have now, time after time we have the same old excuse it was not me gov it was those nasty tories
- Terence Neil Cook, uk
This is everything to do with Brown ,who inherited a healthy surplus from the conservatives in 1997 for three years he kept to their spending plans then blew the lot,now we are in a worse place than any country to fight the recession and Brown either hasnt a clue or cares less and will just go back to scotland ,having ruined England!!!
- Jean, london ENGLAND
To Melvyn Windebank : I say please look at how Boris is running London. He is quite simply a breath of fresh air and everyone that I know ( including a strong Nu Labour supporter) is telling me how pleased that they are with him so far. So much better than a tired and clapped out Ken Livingstone. Roll on the next General Election when we can at last vote on Useless Brown.
- Michael, London
In Nu-Labour Britain the only people who have nothing to fear are those who rely on the State for everything; we will go on paying for everything (including ludicrous rents of £4000 per week!) People who have worked hard to look after their families are now suffering thanks to Brown's disastrous policies. Blaming it on the tories (Melvyn Windbag)is just silly; they have not been running the economy for the last 11 years!
- Beatriz, London
This is bad news regardless of perceived social class.
Interesting that the government's guarantee will cover its own voter heartlands but not hardworking families in much of London and the South East where the loss of jobs will be greatest.
We could have a 'London Weighting' if more of the tax we pay (London contributes 16% of national GDP) was actually recycled into London instead of buying Scottish votes. (ps I'm part-Scots by the way).
- Jools, London
"get rid of these Red Flag singing idiots who are ruining are country."
er..I don't remember the Great British public voting in the Communists three times in a row, but I do recall them showing a vote of confidence in the Labour Party
- Keith Price, Luton, England
The Conservative party will only win the next election if they somehow begin to act like Conservatives - that is, pledge to (1) cut taxes so that those who actually pay for everything - and, coincidentally, vote - suffer less than now (2) cut public spending savagely so that all the freeloaders & pension-cushioned don't cost so much (3) bring back Grammar schools so that Britain can have an upwardly mobile generation once more. How likely is any of this? Given that Cameron wants to be Blair-lite, very unlikely. But it would be hugely successful and would get the vote of everyone I know (all hard working, middle class taxpayers)
- liz, London,UK
The current Labour goverment has bled the hard working people of the UK to bankruptcy with it's stealth taxes and "we decide how best to spend your money attitude".There has been no contingeny plan for a downturn in the economy as the "bust" part has now arrived, everything is being done on the hoof without thought of how it going to be paid for. Call an election Gordon and see if the people agree with the way things are being handled.
- Colin Petrie, Billericay
Just goes to show what happens when greed and a mentality of how much my house will be worth next year takes over from commonsense.
This has nothing to do with Gordon but everything to do with the tories who got people to buy their council homes but refused permission for money raised to be used to build new council housing. (Wonder where all that money is?)
We also now have the position where mortgages are more than the value of the property they are for and selling will incur a loss. Many years ago LBC Radio had a finance expert who warned that property prices can go down as well as up but no-one belived him. Looks like he was right afterall.
Anyone who wants to know how the tories would behave just have to look at Boris Johnson ...Thats All Folks..
- Melvyn Windebank, Canvey Island, Essex
I say please vote for Cameron, and get rid of these Red Flag singing idiots who are ruining are country.
- Ebin Donk, Angus Scotland
And still British people would vote for Crash Gordon... Britain has become quite simple and uncivilised. OK he has never been un-elected but Crash has the British people depending on him. He would win an election if there was one I think that is how bad it has become here. They believe his talks, gimmicks and statistics. Crash is a very clever politician at it.
- Jacqueline, Hampstead, London
"We would be better off with a child running the country"
No, please don't vote in David Cameron. Please.
What on earth mortgages have to do with running the country's economy is anyone's guess. A phone call to Abbey and they always come to a voluntary agreement with folk who are in trouble
- Keith Price, Luton, England
Gordon is a complete idiot and frankly we would be better off with a child running the country. I just hope like many other people in this stricken, sick and destroyed little island I keep a roof over my head to see it recover.
- Fly, london
