Talk to your lender, struggling homeowners urged

Homeowners struggling with mortgage-related debt management difficulties have been urged to contact their lenders as soon as possible to avoid being repossessed.

According to the Council of Mortgage Lenders (CML), its members are keen to help their customers avoid repossession and are more likely to help when they are made fully aware of the situation as it unfolds.

Furthermore, the council maintains that lenders are in a position to offer debt advice that could be the crucial factor that helps a family maintain ownership of their home.

The CML made clear its position in a letter to the chancellor Alistair Darling, in which it also suggested that the rate of repossession in the UK is likely to “remain low”.

“Borrowers can do a great deal to help themselves, by ensuring they make contact with their lender as soon as they realise they may face difficulties,” a statement from the organisation read.

Meanwhile, the insurance firm Axa recently suggested that more homeowners are at risk of repossession and financial disaster now than was the case during the housing sector crisis of the early 1990s.

Written by Giles Stevenson