The Indebted Society by Janet Ford

Author:Janet Ford [Ford, Janet]
Language: eng
Format: epub
ISBN: 9781134985807
Google: U2dbtAEACAAJ
Barnesnoble:
Goodreads: 38503881
Publisher: Routledge
Published: 1988-10-06T00:00:00+00:00

Reduced income: relationship breakdown

It has often been argued that mortgage default is one likely result of the substantial disruption to income and expenditure patterns that occurs when a household is dissolved as a result of relationship breakdown. Typically, the same income has to stretch to fund two homes instead of one. Studies by Tunnard (1976) and Sullivan (1986) suggest that, although women may initially remain in the matrimonial home, the costs prove prohibitive and that many women subsequently move out of the tenure. Sullivan talks of ' "forced" moves out of unshared owner occupancy into local authority tenure by women who were unable to maintain mortgage repayments' (p.40). The BSA (1985) have argued that 'the single most important cause of mortgage arrears is probably matrimonial problems' (p.13) and attribute some 40 per cent of repossessions to this 'cause'. Despite their apparent assertiveness, the BSA go on to note that the direction of the causality is uncertain. Along with Tunnard they note that default (that may have its roots in a whole range of other factors) may be a contributory factor to relationship breakdown, but that equally the default may follow on one partner attempting to manage on a reduced income in the matrimonial home. It is this last empirical situation that is most commonly documented and discussed.

Within the cohort, separation leading to reduced income was an important part of the route into debt in a number of cases. However, by virtue of the way the cohort was established, only those who had separated but remained in the family home can be examined here. Although arrears had emerged, they had not yet grown to the point where a move out of the tenure was in progress. The interviews, however, show the range of pressures and processes that often later result in the moves that writers such as Tunnard and Sullivan have documented.

At the time or the first interview, eight respondents were separated but still living in the matrimonial home: six women and two men. One further set of respondents had separated by the time of the third interview (nine months later). In five of these cases non-payment followed one of the two parties leaving the home and these cases will be examined first.

One couple, with a young child, who had a mortgage of £134 a month and a weekly income of £114 found that, although sometimes they were stretched, they could and did pay everything. Unexpectedly, from the woman's point of view, the man just walked out.

It just happened he walked out at the time the bills were due. As he went on the Friday they came in over the next two weeks, gas and electric. I get nothing from him, I don't even know where he is. It was so unexpected I'd had no time to save up to be able to manage the bills.

This woman went to DHSS first thing on the following Monday. They took all her details and benefit started coming through to her, £67 a week. Due to a misunderstanding, however, she did not pay her mortgage.

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