Homeowners who are struggling to make their mortgage repayments have been urged to contact their lender over the issue as soon as possible by the Homeowners Advice Centre.
Advisor for the body Al Elliot noted that, in order to reduce the risk of repossession, homeowners who cannot meet their payments need to talk to their bank or other lender “sooner rather than later” about getting mortgage debt advice.
“[Talk] about swapping to interest-only payments as most lenders will refuse to do this if you are in arrears,” he advised.
And he also urged those who do move to interest-only payments to switch back as soon as their financial situation allows, otherwise the homeowner will become liable for the full mortgage balance once the loan period expires.
Research conducted for Cheltenham & Gloucester in September revealed 42 per cent of homeowners worry about the lack of mortgage options available to them
By Tom Musk