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As the Council of Mortgage Lenders details more alarming growth in the number of homeowners falling into mortgage arrears – now up to nearly 170,000 by the end of 2008. Payment Protection Insurance lobbyist Sara-Ann Burgess urges homeowners to purchase cover that pays a monthly income should they lose their jobs.

Burgess, of British Insurance, says: “There’s a clear correlation between the increasing number of job losses and mortgage arrears, so it makes sense to buy a policy that will ensure continuity of income to meet monthly bills.

“PPI provides a valuable financial safety net for people whose income is interrupted through accident, sickness or unemployment.”

Burgess has calculated that 168,000 households in arrears by the third quarter of 2008 equates to around 613 households per day unable to meet their loan repayment.

“This figure is staggering and frightening,” says Burgess. “Whilst I realise PPI may not be suitable for all, I do wonder how many homeowners could have given themselves some financial breathing space with a policy that pays their bills for up to a year?

“It’s all very well calling for lenders to be more sympathetic to homeowners’ dilemmas and lobbying the Government to do more. But monthly bills still won’t get paid and debts will continue to rise.”

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

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As the mortgage market continues to be set in deep freeze, it seems little is being done to help with those with little equity in their home or little deposits to spend.

According to statistics from Moneyfacts.co.uk, at the start of this week there were only 2040 mortgages in the UK, and of them only 1.4% were for those with only 5% equity, and only 8.2% were for those with 10% equity.

This is a drop of around 50% in little over a month, highlighting the speed at which sub prime mortgages are dwindling.

Michelle Slade, mortgage expert at Moneyfacts says: “Lenders are continuing to require a bigger deposit than ever before to get their best deal, with 95% deals virtually disappearing and 90% deals not far behind.”

This is tough reading for anyone who has limited collateral and is desperate to move. The only glimmer of good news lies in the fact that many of those unable to mortgage or remortgage will be stuck on the lender’s standard variable rate, which fell recently and could well fall again before 2009.

Of course there is always hope. Although the high LTV deals are shrinking, there are still nearly 30 mortgages for those who only have 5% equity – so if you think you could catch one of those deals talk to your adviser today and find out where you stand.

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

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IT’S like standing between two boxers and being CLOBBERED from both sides. In the blue corner lurks that old bruiser Impending Recession —where people urgently need to pay off debt or cut its cost.

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Do you fancy buying shares in an investment company run by the world's greatest investor? After recent share price falls, now could be a great opportunity to invest in Warren Buffett's Berkshire Hathaway.

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Almost half of the owners of the UK's 2.9 million interest-only mortgages have no plans to pay off their loan.

According to research from LV=, four in ten of the interest-only borrowers are relying on the value of their property increasing as a means of paying off their mortgage when it comes to remortgage.

LV= says only a fifth of people plan to use other investments, not linked to their mortgage, to pay off their mortgage.

Of course, with house prices continuing to fall by as much as 15% according to some sources, this puts those on interest-only deals in a lot more difficult position.

And problem could be limited to a smaller group of people – nine out of ten of those who have no plans took up their mortgage since 2003.

Mike Rogers, group chief executive of LV=, says: "A previously booming property market led many people to bank on being able sell their home, use the proceeds to pay off the mortgage, and still have enough left to buy another home.

“However, this strategy may have been overturned by current and predicted future falls in property prices. These people should therefore seriously consider investing as much as they can now, and regularly, to help pay off the mortgage capital at the end of the term."

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

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Many mortgage lenders are hiding favourable standard variable rates from new borrowers in an attempt to put them on costlier rates.

Mform.co.uk found that few borrowers are now able to access SVR products because most of the high street banks have all stopped advertising their SVRs to new applicants.

The SVR has historically been for borrowers whose term has run out. If a borrower did not remortgage, or could not, they would be stuck with a higher, inflexible mortgage. But now, the SVR is one of lenders’ most inviting offers thanks to banks having been forced to bring them more in line with the 3% Base Rate. Also, SVRs do not have fees and penalties attached to them as they are supposed to be the default deal.

Now these could be great for people who are struggling to meet payments each month, or who have debt problems. But Mform found people are not able to access these rates as lenders will simply hide them, preferring to offer less competitive trackers or fixed rate mortgages.

Francis Ghiloni, marketing and business development director at mform.co.uk, says: "In the past SVRs were the default for borrowers who could not or would not search out better deals. Now there are exit fees and application fees it is even more important that customers assess the true cost of the mortgage. Lenders should be more transparent with their pricing policies.”

Whatever rates are out there, the best way to see them all is to ask a broker. Just because an SVR is the cheapest rate, doesn’t mean it is the best deal, especially for those with debt issues. And regardless of lender transparency, a broker can see everything that is out there and can find you the single best deal for you.

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

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Unemployment rose to its highest level in more than a decade in September as the economy tips into recession, meaning more people will be facing the need to search for adverse finance options.

The UK Office for National Statistics said the unemployed now stand at 1.825 million, the highest level December 1997. This means more people will need help paying their mortgage, managing their debts and getting on with their normal lives the best they can.

Tony McNulty, the employment Minister admitted we are now in "tough times" and he is right. But you do not have to be. There are still financial options out there, but only to those who do not succumb to desperation.

If you have adverse finance, there is no point sticking your head in the sand. It means accepting your situation and thinking clearly about what you are going to do as your job becomes ever less secure and things get ever more bleak.

It means stopping spending, it means looking to where you can make savings and it means getting professional advice. The first port of call must always be a financial adviser. Not only can they show you where you are going wrong, but they can also point you towards real help in the form of secured debt, refinance and debt management.

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

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Money currently owed to creditors in County Court Judgments across the UK stands at a whopping £779m for the third quarter of 2008 - with more people less willing to meet their financial responsibilities.

According to Callcredit, this is an increase of £45.6m in just one quarter - and an increase of more than £100m on 2007 figures - but individuals are less willing or able to settle these mounting debts. This might be due to bad financial management, ignorance or sheer pig-headedness.

This is not what those with CCJs should be doing – paying a judgement has to be paramount, as non-payment means further bad debt and even more restrictions for those looking to borrow.

There are mortgages out there for those with CCJs – but someone who is not willing to pay them is a lot less likely to be offered a deal by a lender. Mortgage lenders want people paying off debts, trying to save money and doing all they can to get out of financial difficulty. So to be sure of any sort of finance, don’t let yourself become another debt statistic.

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.

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Scottish borrowers could struggle to find a mortgage following the nationalisation of Northern Rock. If they cannot switch to another lender, they could eventually lose their homes.

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Time will tell whether Barack Obama is a great leader or simply a great orator, but his election campaign made McCain's look like something the Women's Institute had cobbled together on a wet Wednesday. Admitting to using drugs in his younger days was a masterstroke – voters respected his honesty and it strengthened his image of the black kid who made good.