People struggling with debt management and making payments on loans and mortgages need to ensure that they contact their lenders regarding this as soon as possible, to prevent any further difficulties, it has been suggested.
According to Michael Coogan, the director general of the Council of Mortgage Lenders, the majority of people who work in partnership with their bank towards resolving problems are successful in navigating through short-term payment issues and reducing the risk of repossession.
“Avoiding possession is as important to lenders as it is to borrowers, and an early warning will help reduce the risk of this worst case outcome,” he said.
His comments come in response to the recent government initiative set in place to remind borrowers to contact lenders as soon as possible if they think they might miss payments.
A recent statement from the UK Insolvency Helpline emphasised the fact that banks and building societies are lowering interest rates for customers finding it difficult to keep up with payments.
By Sarah Adie