Debt from credit cards ‘making mortgage repayments difficult’

Michael Coogan, director general of the CML, told BBC Radio 4’s PM programme that some customers have problems repaying their mortgages as they have debt management issues.

The CML director general recognised that “for some customers, particularly if they’ve overstretched on credit cards as well, they’re finding some difficulties with paying all their debts”.

However, he also added that “most consumers” have no such problems and despite being “stretched” by interest rate rises, their mortgages are still affordable.

Mr Coogan’s comments followed figures from the CML released on Friday that revealed the number of homes taken into repossession in the first six months of 2007 was up 18 per cent on the previous six-month period.

The figure reached 14,000 homes, according to the CML.