Many UK homeowners will be shocked at the rate of their next mortgage as £30 billion worth of cheap fixed rate mortgages end this month.

The poll, by moneysupermarket.com, revealed one in six have found a new deal but that monthly payments will be so much higher they fear they will struggle with repayments. A further 18% have struggled to find a new deal they can afford or will be eligible for.

Thanks to a glut of cheap fixed rates two summers ago, many people have been enjoying very low rates – rates that cannot be duplicated during this difficult financial period.

The website also found that over half of all homeowners whose mortgages end soon haven't even started looking for a new deal.

Louise Cuming, head of mortgages at moneysupermarket.com, says: "Many homeowners will be plunged into a borrowing underclass in July when their fixed rate deal comes to an end. Banks are cherry picking customers, leaving many people unable to find affordable deals to service mortgages taken out in better times, when they were plentiful and easy to get hold of.”

The website recommends using a broker as a way to navigate the UK mortgage minefield.

Cuming adds: "Burying your head in the sand isn't going to help. Anyone whose fixed rate deal is coming to an end should start planning at least three months before the product is due to finish.”

And if you do find the perfect mortgage there are still trials to overcome – bills, fees and most importantly, insurance. And according to Gocompare.com, people are missing out on the most competitive insurance deals as more lenders pressure mortgage borrowers to take their own insurance policy.

Their survey revealed one in eight mortgage holders said that they felt under pressure or believed that buying the insurance was compulsory. Only a fifth said they bought the cover because they thought it was value for money.

Hayley Parsons, chief executive of Gocompare.com says: "We know that mortgage deals have been harder to secure of late but we really don't want to go back to the bad old days when customers were often under pressure to buy the lender's products to help secure the loan.

"Mortgage lenders will generally provide insurance from one company, so it's unlikely that theirs will be the most competitive policy. Homeowners should shop around for both their building and contents insurance."

Of course all the worrying stories coming out of the mortgage market could all be lies, if some people are to be believed – Zurich asked members of the public about the credit crunch and the problems the UK housing market is facing and a fifth of people thought the credit crunch was just something created by the media.

Worryingly, more than a third of people asked didn't believe that the credit crunch would affect them, in spite of all the talk of the housing market downturn, the difficulties of obtaining credit and the rising cost of living.

Tony Solomon, business development director at Zurich UK Life, says: "It is worrying to find that less than a third of people have reviewed their finances in light of the credit crunch.

“With the credit crunch bringing spiralling living costs, from fuel to food to interest rates, families are seeing their budgets stretched to the limit. It is crucial for people to do something positive such as seeking advice and reviewing their finances to ensure their money is working as hard as possible to meet their future needs.”

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More and more American homeowners are being forced to live in their cars as the credit crunch continues to take its toll.

According to The Guardian, there are a growing numbers of middle-class professionals in the USA who are losing their homes and having to live out of their cars.

The paper reports that a homeless agency in California has launched a safe parking scheme, to give those who have nowhere to go other than their vehicle a place to park.

Luckily for us, most homeowners in the UK have not been hit quite as badly by the crunch – in fact, according to GE Money Home Lending, by making just three home improvements, Brits could add £54,922 to the value of their home.

Gerry Bell, head of mortgage marketing at GE, says: “With the softening of UK property prices, more consumers are potentially looking to carry out home improvements rather than move house and our analysis has revealed how much certain improvements can add to the value of your property.”

The lender has found that the top home improvement is a loft conversion, which could increase the value of a UK home by over 12%.

The research found on average a loft conversion would potentially add £22,898 to the price of a property, whilst building an extension could increase the value by approximately £19,800. Adding a conservatory, the third best way to add value to your home, could increase its value by around £12,229. These three improvements combined could add £54,922 to the value of a typical home.

And people are acting fast – according to Alliance & Leicester, more than one in three homeowners have made improvements specifically to increase the sale appeal of their home.

A&L has predicted that 3.25 million homeowners are looking to move over the next 12 months. It also found that more than one in three homeowners who have sold a property in the past have, at some point, made improvements specifically to increase the sale appeal of their property, with an average spend of £3,000.

Richard Taylor, head of mortgage products at A&L, says: "Even within the current climate, there are still millions of people who are looking to move and they are doing all they can to get the best price for their property.

“However, it is clear that DIY and home improvements remain important to all homeowners, both to those looking to add value to their house in order to sell, and to those who are looking to stay put and benefit from these improvements personally."

But the process isn’t cheap – less expensive improvements like re-decoration and outdoor space are not top of potential buyers' priorities when looking for a new property. Over three quarters say the number of bedrooms is the most important selling point in the property.

But Taylor warns those thinking of improving their property to stop and think of the seller, not their own desires. He adds: "Recent pressures felt by homeowners looking to sell means it is essential they are in-tune with what potential buyers are looking for. What sellers perceive as necessary improvements can often be irrelevant to those looking to buy.”

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More than four million households in Britain have to use a credit card to be able to pay the monthly mortgage repayments.

According to the Breaking Point report by UK housing charity Shelter, 4.1 million homes or 16 percent, have had to resort to credit cards as means of funding the mortgage repayments.

The charity says rising mortgage rates and cost of living has had a straining affect on the nation, six million, almost one in four, households are suffering stress or depression because of their housing bills.

The report set out to discover what affect Britains chronic shortage of affordable homes to buy and rent is having on ordinary people.

Two million households say meeting housing costs is a constant struggle, with 400,000 falling behind with rent or mortgage payments. 6.3 million, or one in four homes, are spending less on food. Three million households have had to sell possessions to keep up.

The report says the Government must take immediate action to build more homes, protect people at risk of losing their property and end the widening housing divide between the housing haves and have nots.

Adam Sampson, chief executive of Shelter, says “Our new report and campaign show just how difficult it is for ordinary people to cope with spiralling housing costs, and how desperately unaffordable housing has become.

“People are going to extraordinary lengths to ensure they pay their rent or mortgage, but the affects of stress or depression, having to sell possessions or deprive the kids of treats can be devastating to family life.”

The report sets out a plan to help those with problems meeting housing bills. It also calls for mortgage lenders to use repossession only as a last resort, and provide more active and earlier help and support to homeowners. It also demands the Government to review property taxation to make the system fairer, including council tax, stamp duty, inheritance tax and capital gains tax.

As Shelter reveals these worrying figures, a Labour minister told UK families struggling with the soaring cost of living to stop being “so bloody miserable”.

The Daily Mail found the remarks in Transport Minister Tom Harris blog. He said that despite the credit crunch sending millions of Brits into depression, “our citizens have never been so wealthy”.

The minister also said people in the UK were spending so much money on food and clothes in such a short time that would have “made our parents gasp”.

Harris says the problem with the economy isn’t in the figures, rather in the attitudes of Brits. He says in his blog that people in the UK have: “crippling levels of cynicism and pessimism”.

The transport minister later apologised for his comments on BBC Radio.

Philip Hammond, shadow treasury chief secretary for the Conservatives, says: “Like his boss, Gordon Brown, he clearly lives on a different planet from ordinary hardworking families - who are struggling with soaring living costs, stagnant earnings and falling house prices.”

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Brits have been lent nearly five million credit cards worth 17 billion pounds without having to prove their income.

According to a credit survey by uSwitch.com, in the past 12 months 84 percent of successful credit card applicants, 4.8 million were not asked to provide any proof of income to support the figures stated in their application form.

Even more shockingly, 14 percent of people were given a credit card without being asked about their salary or outgoings during the application process, only 8 percent of people were actually asked for proof of income or outgoings.

To get hold of the credit cards, 5 percent of people lied about their salary when applying, adding up to an additional 70 percent onto their actual income.

The website says after the credit crunch dominating consumer finance and the mortgage market becoming increasingly challenging, affordability checks should be the number one priority for credit providers.

It says credit card spending in the UK now totals 146.4 billion pounds, which is the equivalent of 10 percent of the UKs total personal debt at 1,430 billion.

Uswitch.coms figures reveal there are now 69.5 million credit cards in circulation with a total credit limit of 177 billion pounds.

Simeon Linstead, head of personal finance at uSwitch.com, says " The fact remains that just because a consumer appears to have a suitable credit score, it does not mean they are always honest about their income and actually have the cash available each month to pay the bill.

“The credit squeeze will back some consumers into a corner and, in sheer desperation, people will resort to lying about their salaries as this is such an easy loophole to exploit.

"Back in April, we uncovered that 20.9 billion pounds was advanced in personal loans in the previous 12 months without any income checks being carried out, so this problem is not exclusive to the credit card market. Further credit checks could be a costly exercise for the lenders and could lead to a decline in the number of accepted applications. However, it could be a small price to pay if it helps to curb bad debt write offs and personal indebtedness.”

This spate of bad lending practices couldn’t be coming at a worse time with the cost of fixed rate mortgage reaching a 10 year high.

According to Moneyfacts.co.uk, the average two year fixed rate stands at 6.75 percent, the highest rate seen in the last 10 years. Customers looking to fix their mortgage for five years are also paying the price as the average rate has increased to 6.72 percent.

Darren Cook, head of mortgages at Moneyfacts.co.uk, says "Many borrowers prefer fixed rate deals, particularly in today's economic climate as they struggle to keep outgoings under control. However, many are likely to find this increased cost too much to bear.

"If the current economic climate persists, it is not unreasonable to predict that we may see a situation where a higher proportion of borrowers are on their lender's SVR, rather than on an actual mortgage deal.”

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More than a quarter of Britons feel their finances are out of control as the credit crunch takes hold.

New research released today by GE Money shows that 27 percent sometimes or always feel their outgoings are out of control. More worryingly, an additional 8 percent say they regularly spend more than they earn.

The survey, conducted by YouGov, also revealed that the effects of the global credit crunch are beginning to impact most facets of UK life. Over a third of Brits say their spending habits have changed in the last six to 12 months with the majority of those admitting that they are making a conscious effort to spend less.

Despite these efforts, nearly 40 percent of people say they still have no money left at the end of each pay cycle.

GE Money says "As we approach summer we are urging people to take an active interest in sorting out their finances. With the cost of living increasing this is no time to relax, it is important that people take stock and ensure they know exactly what they owe and when."

Chris Tapp, director of Credit Action, says "Struggling financially can feel like being the passenger in a speeding car with things moving very quickly and seemingly totally out of control.”

CreditAction is a debt charity that tries to help those in financial difficulties. Its monthly debt watch has found that the UK is in debt to the tune of over 1.4 trillion pounds.

Tapp adds “Even when people want to sort their financial situation out, they may not know where to go for information and advice. The web is now the second most popular place for people to turn, after friends and family, so it is important people are aware of the good sources of help that are available."

Lloyds TSB Mortgages has found that as the financial belts are tightened across the UK, homeowners are taking a do it yourself approach to moving home to help keeps costs down.

Over half of those surveyed by the bank admit they plan to undertake the removal process themselves to help save cash in the current climate. A further one in 10 homeowners plans to adopt the role of estate agent and sell their property privately to avoid estate agent fees.

The average homeowner spends 7,434 pounds on their home move, with one in five spending over 15,000.

Alison Burns, director of network mortgage sales at Lloyds TSB, says "In the current economic environment it is not surprising that consumers are taking a more cost conscious approach to moving home.

“Shopping around for good deals and opportunities to earn rewards on your spend is always a good idea but there are some areas where you should not cut corners, such as legal fees and a thorough survey, as this could end up costing you more in the long run."

Chris Cummings, director general of AMI, says brokers are the key to getting through the credit crunch.

He says "During this difficult period consumers need advice more than ever. That is why we will now begin a concerted campaign to demonstrate to consumers the value of mortgage advice.”

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