Credit crunch ensnares 3.6 million mortgage payers

It found that a high number of mortgage customers have had put plans to sell up or extend their property on the backburner because of the credit crunch and subsequent housing market downturn.

The under-25 age group appears to be the major victim of the financial crisis. The company’s research showed that 44 per cent of young homeowners feel trapped in their homes with just 14 per cent saying they were planning to move home in the next three years. Around 32 per cent of homeowners in that age group have already cancelled plans to move in the next 12 months.

Geographically, those in Nottingham feel the worst affected, with 36 per cent claiming they feel trapped in their homes. At the other end of the scale, just 14 per cent said they were feeling the pinch in Belfast.

Overall, 79 per cent of those with mortgages are now planning to stay in their current homes for the next three years. However, while just six per cent of homeowners in Norwich are likely to be moving within this timeframe, 34 per cent of those living in Cardiff are planning to do so.

Chief executive of Gocompare.com, Hayley Parsons, said: “This research shows just how hard the economic downturn is biting. A huge number of UK homeowners are worried about their financial situation and so feel trapped in their homes.

“It’s never been more important to save money wherever you can and shopping around for your home and car insurance could save you hundreds of pounds a year in a matter of minutes.”

Builders will also suffer as a result of the credit crunch, with almost 15 per cent of homeowners putting off plans to extend their home. More than a quarter of those in the under-25 category have abandoned extension plans.

©Fair Investment Company Ltd