Mortgage rates are on the rise again - and, as banks struggle to come to terms with turmoil in the global money markets, home owners are struggling to keep pace with the growing cost of their mortgages. According to a recent study, more than 1 million people are resorting to using high interest credit cards to cover their mortgage payments leaving them at risk of eviction or repossession. Repossessions rose 65 per cent during 2006, according to the Council of Mortgage Lenders, and are expected to escalate as people come to terms with household debt which is now running at 150 per cent of average annual income.

1. Speak to your mortgage lender - they will do their best to help. For example, if you have a repayment mortgage, you could switch to an interest-only plan. If you are already repaying only interest, then you may be able to arrange a mortgage holiday.
2. Talk to a Mortgage Adviser If your own lender can't help, you could remortgage. This may mean that you could get a cheaper rate, move to an interest only mortgage or simply stretch your repayment term until things get a little easier - but remember that you may have to pay penalties and fees for settling your mortgage early and could rack up larger debts in the long term. Talk to a mortgage adviser
3. Get advice from a specialist charity or organisation. Try Citizens Advice - you'll find a local office in the phone book or at www.citizensadvice.org.uk - or the Consumer Credit Counselling Service (CCCS) at www.cccs.co.uk. There is no need to pay expensive private agencies - these services are free.
4. Work out a budget. Start with what you are spending now and see what you can trim - remember essential bills, such as utilities, council tax, insurance and food. You'll find a range of calculators, including a budget planner on our website at http://www.moneynet.co.uk/calculators/repay.shtml

Typical 11.0% APR
variable

Cheaper Homeowner
loans from Ocean.

13.4% APR Typical.
£10,00 to £100,000
over 5 to 25 years

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.