A study performed on behalf of the Bank of England has found two out of every three mortgagors have reported their repayments have not changed, or have in fact fallen slightly, compared to last year.

The 2008 NMG Research survey highlighted that just 16% of respondents had seen their repayments increase by more than £50 a month.

However, the report did acknowledge households have found it more difficult to service their existing debt, a fact it attributed to higher household bills leaving borrowers with less disposable income. More than half the households surveyed reported that their monthly ‘available’ income had fallen since last year.

While an increasing proportion of households reported experiencing some financial difficulty, just 3% admitted actually falling behind on their repayments.

The report concluded: “Those that did report having fallen behind were mainly mortgagors with high LTV ratios or renters. As in previous surveys, very few households saw bankruptcy as a solution to their problems, with most households saying that they would try to resolve their debt problems by cutting back on household spending.”

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