Payday loans 'used to fund rent and mortgages'

Housing charity Shelter has claimed that hundreds of thousands of people are borrowing from payday lenders to meet rent or mortgage payments.

View all 3 updates ›

19% admit to extra borrowing to pay mortgage

Nearly one fifth of people said they had borrowed money to meet a mortgage repayment last year, according to research by the housing charity Shelter.

Almost a million people used a payday loan to cover mortgage costs last year, Shelter said. Credit: PA

At least 19% of people quizzed admitted to borrowing in some way to keep their home, with 2% relying on a high-interest payday loan to cover costs.

Others had dipped into an unauthorised overdraft, borrowed on their credit card or asked family or friends for the funds, a survey of almost 3,700 people revealed.

Campbell Robb, chief executive of Shelter, urged those who are struggling with their rent or mortgage costs to seek help.

He said: "Our message today is don't keep your worries to yourself. Shelter's expert advisers can be the difference between keeping your home and losing it."

More top news